Thursday, March 6, 2014

Teaching Children to Be Financially Savvy

Teaching children about the value of money from a young age will make them responsible adults when they grow up. Read on to know how this can be made possible.

Parents are a child’s first role models for learning money management skills. Teaching them simple steps to save money and to make the best use of it, will help them in a long way. Supporting habits of saving and practicing the age old theory of reward for work will make them understand the basics in a better way. Have a look at simple tips that can make children money smart.

1. Introduce money at an early age

Once a child starts going to school, start making him aware about the concept of money. Teach them to save coins or change in their very own piggy bank and let them take ownership of it. Set up small achievable goals for them, and make sure to appreciate them when they achieve it. When in the market let them pay for small things and check if they got the right balance.

2. Encourage the habit of Saving

Talk to your children about their wants and then guide them to save and set a target for them. Smaller children can save for a toy or a game and older ones for a movie or going out. Offer to add if their balance falls short and make it an interesting task.

3. Teach how to work in a budget

Give the children a small sum of money and then ask them to keep part of it aside. Now teach them to manage the whole month in this left over amount. At the end of the month discuss about the savings how they add up to become a bigger amount. Make a daily planner for them that will guide them step by step.

Guest post contributed by:
Author Bio: Lim Chuwei is a Teacher in Singapore at ChampionTutor and highly advocates the use of cloud based application for teaching and learning.

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  1. Should encourage them to save money from their ang pows.

    Also to inculcate "needs" and "wants".

    1. Hi Gerald,

      Good suggestion. Needs and wants are really important to teach. Sadly many parents just give whatever their kids want now. It may not be good for the child when he or she grows up.