Teaching about money to the kids is essential to lead a successful life in the future. As concerned, parents should set as a living example for their child to earn, to save, to budget, to spend and to manage money.
Given below is a list to prepare the kids for future readiness;
1. Money earned: The parents should teach the kids about the ways of making money and need to explain money is not cultivated; it is earned through hard work. Once the children learn the concepts of the money, they will be better in managing the money in the future. The parents should discuss how hard to earn a single penny to their kids.
2. Things cost: While shopping, explain the value of the products purchased in the shop in terms of money. Ask them to calculate the value of each item displayed in the shop. MiniandMaximus offer the toys at a reasonable price. If the kids want something from the shop, ask them to set the goals to buy the toy for the next time. This will help the kids to become smarter in managing the money.
3. Cultivate savings: Teach them about savings and its importance. Make them understand that saving a penny will help in prospects. Be a role model and accompany the kids to keep the money. Cultivate savings as a habit rather than the occasional aspect.
4. Make them create a budget: Budgeting is the key to financial success, and one can be financially stable when they learn the art of budgeting. Teach the kids to make a budget for the month including spending, saving and sharing for a month. Kids will learn to divide the money accordingly for all these three aspects. Discuss with the kids about the family budget and how it is allocated for each category.
5. Avoid spending: Many kids want to explore and shop for new things. Teach the use of each item and ask them to analyze whether the purchase will be useful for them or not. Ask them to avoid unnecessary expenses which will make them exceed the budget. …