It is important to teach children about money and here are five reason to do so:
- Use a clear vessel to save up: That piggy bank idea might work a miracle for your kid. The problem with this method is that it lacks the visual character much needed. By using a clear jar, your kids get to see the progress of their money growing. Talk openly with your kids about this and make a big deal about having their money grow and the importance of this. Today, they have a dollar on their saving vessel. Tomorrow it will grow to two dollars and the idea grows.
- Set an exemplary character to be followed. A study conducted by Cambridge University revealed that money-saving habits in children get to be formed by the time they are 7 years old. Those innocent eyes are very alert and observative. Children notice their parents every move and it is important to be an exemplary example. If you and your partner are continuously arguing about finances your children will be sure to notice. Set a healthy standard example for your children and they will be sure to follow it in their later lives.
- Stress on the importance of being more than a giver: Once they have learned about earning money and saving, teach them the importance of being a giver. They can visit a church event or a charity event where they can contribute to the course. Later they will realize the importance of being more than a giver. Giving aid especially to the less fortunate is very essential.
- Give your child an allowance: Giving your kid an allowance is a clear way of ensuring that they learn how to budget their money. With responsibility and the need to buy their own stuff, they will be able to learn and distinguish their wants from the necessary needs.
- Explain to your kids about credit cards and ATM cards: Most kids think that money comes from ATM machines and you can simply pay bills with a credit card. Teach them the meaning of these money devices. Most of them do not know that often paying with a card means that you have to pay a dire interest.
