Learning - Life Skills | 4-18 yrs

Learning To Manage Money

ParentCircle

“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey

Children love to collect a lot of things and this also includes money, especially in piggy banks. But they don’t understand the importance of money until they reach a certain age. Often, parents wait for their children to grow old enough before talking to them about money. But not talking about money to children can affect the way children think about money. So, the earlier children learn to manage money, the better prepared they will be to manage their own finances.

Money management is one of the few things that is not taught in our schools. So, you will need to come up with ways of teaching your children how to manage their money. The most simple way of teaching children is to be an example yourself. According to the article titled ‘Children mimic parent's money habits, spending event more: ING survey’ in business-standard.com, ‘About 80 per cent of respondents, read parents, who participated in the annual ING Zing survey said they believed that their children followed their money habits. Even more discerning is the fact that children tend to pick parents’ spending habits marginally more than their saving habits’.

With the help of some simple concepts, you can teach your children the importance of money and how to manage it. A trip to the local grocery store can provide a valuable opportunity to teach children how to compare prices and shop. If you provide your children with a monthly allowance, you can teach them about the basics of earning, spending and saving money. You also need to educate your children about financial mismanagement like overspending, borrowing too much, paying high interest rates etc. However, remember that good financial skills can’t be taught in a day.

You can learn more ideas about this topic by flipping through the pages of this ClipBook.

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