Many young people today do not understand the essence of earning and spending money. They were not taught the importance of money, even if they are still young. Parents have a very big role to play in educating their children about the importance of money.
Introduce money at a young age; as soon as a child is able to count. Answer any questions they may have about money, let your answers portray the importance of money to them. Children definitely learn by observation and repetition. These are great ways for your children to grasp anything you are teaching them.
Another tip to guide in teaching a child about the importance of money is to let them know that "money does not grow on trees". Teach them that money comes by working hard. You can let them work on small jobs at home and then reward them with money.
Talk about money every time money is involved in a conversation or when you have a great opportunity to teach your children the values of money and how to use it. Make sure that you portray the importance of money. Communicate with children about your values concerning money.
Needs and desires
Teach your children the importance of money by teaching them the difference between things they 'need' and things they 'desire'. This will help them in managing their money by keeping things they need on priority. This will help them save money on things they do not really need.
This should be done every month or year until your children learn the importance money. After a while, they will know what to do because it becomes a routine for them until they become adults. Think about something that the child buys every now and then, as that would be good to start saving when the year begins. Pick which ones you want kids to save money for and explain to your kids about the importance financial goals. You need to set goals as well to show your children how to actually do it.
Prepare piggy banks for each goal and label them just in case you have multiple piggy banks, one for each goal. Label the piggy banks with your financial goals as a reminder of how much it should contain at the end of the year. You should calculate how much should be put into the piggy bank on a daily basis in order to meet the goal. At the end of the day, you and your children should put an amount into the piggy bank so they will see that both of you are doing it. Let your life teach your children the importance of money.
Charitable giving is one of the most important aspects of money that you can teach your children. Make them aware that there are many people less fortunate than they are and it is our responsibility to help. Giving to the needy is an important part of life. Do not just say this to them, but let your children see it in your life, and then imitate. Let your children see you giving to the poor, and then they will imitate you.
Be quick to teach your children about the importance of money. Do not let them go astray financially.
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