Instilling Money Management Habits In Kids

Childhood is the age of innocence. For children, pockets of mummy and papa are like ATMs from where they can withdraw money without much effort. This aside, you should teach your child the importance of money in life. It is also very much necessary to teach money management skills to your child. I know it is not an easy task. It takes plenty of time and efforts but you should do it with patience. Many parents are of the view that children will learn everything with age. but it is not that simple. You should develop good habits in your child at a very young age because what your child learns at this stage will continue throughout his life.

I want to share my experience with you. It is the habit of my hubby to say the sentence ‘Don’t worry, it is O.K’ whenever my child spoils or breaks something. We always buy new things for our son. Now this sentence has become the pet line of my child too. He doesn’t know that everything comes with money and earning money is not an easy task. It will take a long time to teach him the value of money management.

The knowledge of money management skill is vital for every member of the family. While making budget, you should keep in mind the views and needs of all. Children and teens should also understand from what resources money is coming and what are the requirements that should be on the priority list. Such an attitude will help your child in future. Take your child with you when you go to purchase something and explain to him that how you try to save money from every item and how you prepare yourself in advance to buy things.

Teach him to count money by play way method. He will learn while enjoying it. Place some money on the table, give it to him and allow him to spend it by his own choice. I am sure that it will be very difficult for your child to develop habit of saving money in the beginning but he will definitely start it very soon. For example, when your child wants to buy toys or comic books or video games and he doesn’t have a huge sum of money in his pocket, he automatically will learn money management skill.

Motivate your child to make budget and draw a line between what he wants and what he needs. Encourage him to spend money on his own preferred items. You may have money in abundance but give your child moderate pocket money if you want to color his future in a bright and shining way. Teach him the importance of saving. You can motivate him for savings easily if you also have the same habit. If you keep on spending money lavishly, you can’t stop your child from doing the same.