Importance of Teaching your Child on Money Management and Savings

Are you interested to teach your child about money management and savings? Tired of searching for an accurate method to implement it? Yes, you have come to the right place, find the details of value of money, need of savings and money management needed for you to take your kid into a proper channel in finance management. Follow the given details to improve the habit your kid's money management and saving.

It is very necessary that every child should get the knowledge of money management to understand the value of money. While teaching the concept of money management being strict like a school teacher won't work. You have to adopt some techniques to make your child alert about value of every single rupee. Here are some suggestions and tips you can follow to do this difficult task.

Never pay for household help

It is very necessary to praise your child for helping you in household work but never develop a habit of paying him/her for every work. This type of rewards can spoil his/her habit of doing work with own wish. In future also the child will not be ready to work at home without getting some reward. Instead you can explain the kid about his duties and the importance of the work and praise him/her when the task is done successfully.

Reward the child for appreciable job

When it is not necessary to pay for the household works, it is also equally important that if a child is completing any skilful job with lots of efforts, then you have to appreciate his/her work with suitable reward to encourage the child for his skill. This can make the child confident and the child can even understand that he/she can do more and more efforts to make his/her talent as a future business plan.

Make the child understand the preferences

Children always wish to have everything they ask. While saying 'NO' to their demands, it is necessary that you should explain the kind, the reason behind your rejection of their demand. Explain the child about the income and the expenditure position of the house. Let the child understand the important preferences of the house. Make the child understand that how it is necessary to pay the important things like house rent, school fees, food items and clothes, bill like water bill, electricity bill etc and of course the basic but important needs of the child such as school supplies etc. This method will teach the child to make a difference between requirements and desires. In future also the child will be able to understand where to spend the money and where to save it.

Teach the child to save money

It is very helpful for the child's future to teach him/her the importance of money saving. Encourage the child by gifting him piggy bank or a coin box to save money. Explain the child the necessity of saving money for a secured future. When the child is successful in saving enough money, it is your duty to support him to open a children account or joint saving account in bank with you. This can develop a feeling of confidence and independence on the child. Share each transaction such as depositing money in that account with your child to cheer him to save more amounts.

Share your responsibilities with kids

Children above the age of five can easily understand the family situation and feelings of their parents. Make your children to know about your earnings, monthly expenses, cost of education, medication and other basic needs. This will improve your family understanding. When you are going for a household shopping, invite your child to accompany you. Visiting the market can increase his/her awareness about the market and also the child can understand the affordability of the parents and how to give priority while purchasing.

Gift them wisely

While gifting your child on festival occasion or on his/her birthday, be attentive and wise. Don't gift unnecessary things to the child, as after a while child loses importance of the thing and demands for another. This can develop the habit of wasting money on unnecessary things in your kid. Instead go for less expensive but useful gift which will be appreciated and well used by your kid. By using these simple tips you can make your child a responsible adult of the future.

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Author: Jagdish Patro24 Jul 2014 Member Level: Gold   Points : 5

Financial discipline is more important in life and it should be practised since the beginning of our life.The teaching should start from home and the parent is more responsible in making his child learn about this. They should understand the value of money and the kiddy bank concept was introduced to encourage the children to learn about savings. Many parents we find are liberal towards children and leave them with money at their discretion. Children are seen spending money at cinema theaters and food corners with friends. This leads to lavish expenditure and they may be out of control, if not checked at the early stage.

They should be cultivated the habit of saving the money and expending it as per the necessity.

Author: Venkiteswaran07 Dec 2017 Member Level: Diamond   Points : 4

This article dealing on how to tech your child to manage money and saving money is a very useful one giving some down-to earth practical tips. I wish the article could have been a little more long and detailed with elaborations.
Being a parent, who had brought up a son by inculcating value of money and the need to save money, I have concurrence with some of the points and tips given in this article.

I would add a bit of my on experience.
I would suggest 'take along''": Take your children along with you when you do shopping. Let them watch what you spend an how you spend and allow them to ask queries and doubts. Let them suggest something. You may approve if it is acceptable, otherwise tell them why it cannot be.
Let them be with you when you prepare a shopping list and stick to it. Keep a small amount of cash, either as coins or small denomination notes. Allow them to do some small buy of what they need and you accept. Let them have the feel of taking out money and paying the vendor under your supervision. Encourage them to ask for the prices of various items.

Once you return home after shopping , explain the details and answer their doubts. Don't teach them to be extreme misers. Let them know that money is for our needs. Let them understand the priorities. Give them piggy banks and deposit the small change after a shopping in the piggy banks. Let them also do that.

This wil gradually help them understand the importance of money , managing money and savings.and the need and

Author: Natarajan07 Dec 2017 Member Level: Gold   Points : 5

This article and Mr.Venkiteswaran sir's reply took me back to our time in England wherein children from primary school have life skill, informal classes. One such activity was a visit to the corner shop. We had to give them a 5 pounds and ask them to buy milk, bread and butter. They have to do it by themselves, bring the change and come back, later we had to verify.

A nice article for parents, most of us have grown without an idea of pocket money and never seen more than a few rupees spent at one time by ourselves. We used to be given a clay elephant or dog money box to collect coins. Our exposure to the outside world and our needs were limited. Now kids are growing up with pocket money, mobiles and exposed to the wide world outside via internet and social media.Unfortunately, this exposes them to unpleasant habits that are easy to imbibe without realizing the true value of money. Educating them in real life from a young age about the importance of money, spending it wisely, how the house runs with ways to earn and ways to spend helps them to understand. Encouraging them to save from an early age helps them to develop the habit of saving rather than spending.

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