As a parent, you may want the finest of things for your child- best of clothes, toys gadgets and even education. Education, however teaches your child the math and importance of money, but in theory. Some lessons are best ingrained when learnt in real life. That is why, it is important to instil in your children the value of money from a very young age, to help them prepare and make sound decisions as adults.
It is very important for parents to early on have these conversations or make an even more liberal choice of giving financial independence to their kids from a very young age. Children otherwise, don’t take very long to pick up on habits that don’t necessarily prove beneficial when they grow up. Therefore, start inculcating financial literacy in your child for him/ her to be a successful, independent adult. Some of the very simple ways to this are:
Start with the basics:
The most basic habit would be to save. A piggy bank would be an ideal way to ingrain in them the value of saving. Your child’s early interaction with money, is watching you spend it on daily needs. It is important to teach them that money is not only for spending. That’s when a piggy bank comes handy to make them aware of the concept of savings.
Teach them the value of giving:
Giving is an essential trait that can help shape the character of your child. Teach them to support a cause or an NGO early on. This habit can help in creating humility and empathy in them.
Pocket money instils a sense of value in them. Giving pocket money to spend every month can teach children to budget their spending and even save some in order to purchase something that they’ve been wanting. This teaches them to value things and delayed gratification, thus avoiding impulse purchases.
Create opportunities to earn money:
Creating opportunities to earn can be an excellent way to create discipline and self-awareness in them. This habit has multiple benefits. Firstly, it teaches them the importance of contributing to household chores, irrespective of gender. Secondly, they also learn how decide to spend the money that they have earned.
Teach them to make wise spending decisions:
This can be done by defining earning, spending and saving to them. Teaching them the importance of hard earned money and saving some of it at the end of the month, will automatically help them decide where they need to spend and where they can save. Also, as an adult it is essential that you set an example by displaying good financial behaviour for them.
It is correctly said, ‘Practise what you preach’ however, do it with consistency. Inculcating new habits is a process that takes time. However, in order for your kids to be responsible adults, it is important for you to put in consistent efforts and communicate with them.