Teaching young children about money

Do you teach your child about money? Maybe most of us don’t think it is important to teach our child in such a young age. Some of us think that they could learn by themselves after school and going to university. This is wrong as we need to teach them as early as we can. Let’s learn some of trick to teach young children about money :-

* Make money magnets by glueing magnets to coins and putting them on the fridge. Show how many five cent coins you need to equal a 20 cent coin.

* Point out all the different ways that people earn money, starting with those close to them, such as family members. Talk about employees and entrepreneurs and students and retirees and how all of them add value.

* Take your children to a wet market and show them how to negotiate with the sellers and how price differences for the same product could lead to arbitrage.

* Save money with coupons for supermarkets, count the savings and spend them on something fun.

* Create an envelope that is split up for saving, donating, spending and investing. Show them they can do multiple things with their money, rather than just spending it.

|How to Make Envelope Money Budget |

* Create a savings goal when they want a big-ticket item. Visualise the weekly progress in a chart. Brainstorm with them on how to save money or make more money in order to accelerate the progress. See how long the big-ticket item can hold their interest. Perhaps they realise that if their purchase takes three months to save for it, perhaps it is not worth it after all?

* Despite all the advantages of card,  use cash for as many transactions as possible. It could help your  kids to understand money is not some magical entity which grows on trees, but that it is something finite which can be gained and lost, managed and controlled.

|Teach Finance To Your Kids |

* Let them make financial mistakes. Let’s just your 10-year-old  crying because he spent all his pocket money in the candy store and didn’t save anything for the toy store, than a 25-year old who spends all his money on a car and is then evicted from his house because he can’t pay the rent.

Reference : MSN.com

It is important for them to have a knowledge on money. Let’s make them do mistake and learn from their experience. He/she will know how to manage money earlier and it could make them wealth than you.

 

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