How to teach children about money management?
September 19, 20245 Mins Read
Due to giving extra money, the child is spoiled, or even after growing up, he cannot spend the money calculatedly, or if he is given money, he hoards it like money, does not want to spend it, or the child has not learned to save, or he rushes without checking when he goes to the market. Buying something, or having an excessive greed for money at an early age - these things are seen in many children.

Children's money management

Many parents are not only worried about these issues, but also don't understand what to do. In fact, because some basic knowledge of money management is not taught to children, these problems arise.

Income, expenditure, savings, donation etc. are the main pillars of personal money management. But many of us do not know that it is an important part of parenting. As children get older, they gradually become involved in economic activities. Also heavily influenced by media, advertisements and friends.

So if money management is not taught in childhood, then either he will waste money by following his friends or get affected by consumerism influenced by advertisements or suffer from financial difficulties due to lack of knowledge of management despite having wealth.

That is why it is very important to teach the child about financial activities and management step by step in accordance with the age. In this case, the child gets the primary education from the parents. How parents earn and spend, how they make financial decisions - these things affect the child the most.

However, if you want to teach your child properly, you must have a plan. How much to teach at what age, how much freedom to give - as a parent you need to know these things.

In order to impart knowledge about money management in children, it is important to take care of some things:

First, there is no need to teach children charity before the age of four. Between 1-3 years, the sense of ownership (Ownership) is awakened in the child. The concept of 'it's mine' develops in the child. It's not selfishness, it's a skill. Never teach a child to donate before this skill is developed. Don't ask a four-year-old to give away toys. But if the child gives voluntarily to others, that is a different matter.

Second, don't give money to a child before the age of six. If something has to pay, you buy it. After six years, you will start paying a limited amount. There must be both direction (how to spend?) and monitoring. Then gradually increase both the amount of money and the freedom to spend according to age.

Thirdly, savings, donations and necessary expenses - must give basic idea about these three things. Incentive to save a portion of the money you will pay as hand expenses first. Also teach him to spend one part for another. It could be buying something for younger siblings or helping the needy and vulnerable people. Through this, the mentality of giving will develop in him. Let him spend the rest on his own. Just be careful not to do anything immoral.

Never pay more than necessary. By this, the habit of luxury and extravagance can develop in the child. How to get the most out of limited resources - this skill will also not be built into him.

Don't pay for the housework that your child does every day. You can give it once or twice to encourage it at first, but not always. As a member of the family, he should realize that these tasks are his responsibility. Otherwise he will not consider himself a part of the family. Also, once he gets used to receiving the exchange, he will not want to do these things without money later on.

Your job is to try to instill financial wisdom in your child. Explain to him why saving is necessary in human life. In the future, if someone in the family gets sick or an accident or needs money for any other emergency, savings is the only hope. Try to inculcate this sense of self-esteem in the child so that he does not have to touch others.

Even if there is a lack in the family, there is no need to reveal it to the child. You are suffering for the child - never say that. As a result, the child may feel an additional pressure and suffer from inferiority complex. Also, children who grow up with economic problems in their childhood may develop a tendency towards greed and dishonesty in general.

There are some things you should always be aware of. There is no need to go to the market frequently with small children. You can buy daily necessities in the market. But don't take him for luxury shopping. As a result, children may suffer from consumerism. If you must, control must be in your hands. If you think that the child will be serious if he goes to the market - there is no need to take him.

And if you have to take it, then tell in advance the maximum amount of money you can spend or take it under the condition of 'not being able to claim anything'. What can the child insist on when going to the market? And how to handle this situation - you have to prepare in advance.

You will try to be thrifty yourself when it comes to shopping. Children will not learn to value money if you are too fast, will waste it. Avoid buying on balance or credit altogether and discourage children. Warn the child repeatedly about the pitfalls of credit cards. How did the familiar people in the neighborhood become destitute by being in debt? Why are you? And what is currently suffering? - Show this example to the child. So that he can get education.

You have to be realistic enough about finances. Don't teach the child that money is not necessary, and money can't buy everything - explain this to the child. Warn the child in advance that the child should not wait for lottery, treasure or other's hope. Those who want to earn money without effort and those who are too greedy, fall into the trap of deception.

Rain or thundershowers are possible

Always discourage extravagance, extravagance, extravagance and lavish living. Encourage giving and saving commensurate with income. If you can stick to these things, chances are your child will adopt it as a way of life. Your attitude will influence the child the most.