Teach Your Child the Basics of Money
A child’s concept of money is a green note that is generated from his/her mom and dad’s pocket. It is something with which you can buy the fun stuff. Does your child know the importance of money and the effort that goes into earning it? Does your child know that life could be a tad bit difficult without it?
It is always good to teach your child the importance and the basics of money from an early age. Here are some easy tips one can follow:
How to earn Money: to instill in a child simple ways to earn money. Your child should understand that you can earn money by working. You can always get your child to do some easy household chores and pay your child in small amounts. The concept of earnings would be clear from an early age.
Savings: the simplest way would be to buy your child a piggy bank and ask him or her to put the earnings into that. The concept of compounded earnings can be taught by you as parents being your child’s banker and putting in the same amount into the piggy bank. The savings would also grow along while also providing the kid an incentive to save.
The importance of banking: Every time your child has saved some money, you could try and educate your child on spending sensibly and saving. Make it interesting by dividing the money and taking your child to the bank and putting part of the savings in an account with the child’s name jointly with yours. The other part could be used to buy educational toys or books which the child would enjoy having and would like to buy with his or her own saved money.
Importance of small jobs: as your child grows up and with his or her initiation into the money factor, you could also teach the importance of taking up small odd jobs like helping your neighbor clean the yard, or washing cars, newspaper delivery, running errands at the stores amongst others. These small jobs would teach him or her the importance of earning money from an early age and would instill the importance of money.
These are small but doable steps to help your child take sensible steps into this practical world that would make him be money wise forever.
