9 Money-Management Lessons Your Kids Must Know

Apr 30, 2018 | 7 months ago | Read Time: 2 minutes | By iKnowledge Team

Look back at your own childhood, how aware were you about money and savings? A lot has changed since then. In this technological age, every teenager has a smartphone, many have access to two-wheelers and most of their demands are always met. Pocket money is often spent recklessly and saving is almost unheard of. If this is what the new generation is learning in life, how do we expect them to have a sustainable outlook towards the environment and society? How can they lead a stable and secure life?

This is exactly why it is important to help teach children the importance of financial planning. Here are some cool tips to help you navigate their finances better:

  • Earning your allowances:

    What’s the best way to teach your kids the importance of money? By giving them practical and real-life experiences. Explain to them that they can’t receive pocket money just like that, they should work for it. You can ask them to help at home with the daily chores, for instance, organising things, making the bed, or walking the dog. This way they’ll understand the value of money and that everything has a price and that not everything can or must be bought.

  • Talk to them about banks:

    Saving in piggy banks is too old school for the new generation. Nowadays kids are keen to open their minor savings accounts in banks. They feel absolutely thrilled about the interest rate, this is the perfect time to talk to them about debit and credit cards. You can teach them how to use the cards for whenever they need to withdraw money. Financial planning at a young age can go a long way.

  • Make them learn about comparison shopping:

    Children are well-versed with the fact that there are multiple variants of a product. They know of brands and are also exposed to advertising. Therefore, it is important for them to understand the basics of comparison shopping. Start by taking your kids for grocery shopping. Let them see you prepare a list and how you buy products according to your needs and budget. Teach them about curbing impulse buying and how to manage financial planning. Sometimes asking them to make a list and help with the money, can give you an insight as to how much they have learnt about comparison shopping and money management

  • Give tips on extra allowance:

    Nowadays, the concept of extra allowance has kicked in. They have ample opportunities to earn extra money by taking up small summer jobs. Teenagers can babysit and even tutor younger kids for a few extra bucks that they can either save in their bank account or use to buy something they want.

  • Show them how to keep a diary of expenses:

    This is probably the most crucial lesson, because no matter how much your kids earn, they need to learn how to track it. Gift them a diary where they can write their expenses will be a great way to inculcate good money management lessons. If they have a smartphone, they can use various apps to make note of their expenses and tally it against the amount that they started with. This will help them prepare a proper investment plan in the future.

Conclusion:
Money management is now the need of the hour. Remember that you as a parent must be a role model for these money management lessons to really be impactful. Teaching your kids when they are at a young age will make them experts in managing finances on their own.

Advt. no.: IA/Apr 2018/3893


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