As parents, the onus is on us that our children learn the right values and approach to a happy successful life. They need to learn all important life skills critical for their future life and money management is one of these.
- One of the most important skills is the wisdom about instant gratification. Many children spend their allowance immediately on small things like candies or toys that they are going to outgrow soon. They need to understand that money can be saved and spent on useful and bigger items that will be pertinent for a longer time and have more value.
- You can help them make wise choices when buying stuff. For example, you can visit starwalkkids.com today today and see the amazing range of items available for kids of all ages. This will widen their choices and teach them about making wise and well-informed choices.
- Teach them the idea of budgeting. They can understand how to plan and buy stuff while staying within a set limit. This will reinforce the idea of buying only when they have enough money. This will be a useful skill later in life when they have to make bigger decisions and they will know how to stick to a budget.
- Take them with you when you go shopping. This will help them see how you make decisions while buying grocery or stuff for the house. How you make use of coupons and deals to save money will be a good lesson to learn.
- They can be allowed to use their allowance on something they want to buy. Allow them to make mistakes in the beginning and teach them gently. They will learn to handle money with care slowly.
- You can open an account for the child when he can understand the concept. Encourage him to save any gifts that he gets and maybe some part of the allowance. He can understand the concept of saving and interest when he sees the amount growing steadily.
All these activities can be reinforced by some fun games like monopoly or small stories. Some gentle coaxing will help them read and understand more about monetary matters. Teach them about money as an essential aspect of life and to respect that fact.