ets Talk Money to Children on Eve of Children’s Day
Recently we had celebrated Diwali & Children’s Day both on 14th November which is so well connected that it is a perfect time to tell our children’s something about Lakshmi Ji (Money) .
Parents always think that children will not able to understand the complexity of money so how to talk to them???
There are plenty of ways to introduce the money concept to your children.
- Role Play Method: Younger children respond really well to roleplay based money concept. You can work money concepts into your child’s imaginary games, like playing pretend store or restaurant.
- Give the child a clear piggy bank and encourage saving :A piggy bank will teach the child how to start saving their money. Giving them a clear jar over a porcelain piggy bank, however, will let them visually see the money pile up. As they start saving more coins, be enthusiastic, and encouraging about their saving habits.
- Give children choices based on price: If the child wants more than one thing, give them a choice between things that have a similar monetary value. This will start to make them more conscious about the value of money and about how much things cost. It will also make them realize that money is limited and that sometimes they can’t have everything.
- Provide children with an allowance for finishing chores: For the kids of 6 – 10 years Set a list of goals that need to be completed around the house and give them a weekly or monthly allowance for completing the goals. Help the child think of things that they want to save for, to help motivate them to complete their tasks. This will give help them understand the value of money and the importance of saving.
- Open a savings account with them so they can save: Some banks will only allow teenagers under 18 to open a bank account with an adult. Take the teen to the bank and talk to a representative about opening up an account. This will provide a means for the teen to save money and will give you the power to monitor how they are spending their money. Once you set up the account, show them how to use any online banking features. Walk the teen through setting up their pin number and using the ATM.
- Teach them about debit and credit cards : We also need to make sure they understand credit and debit cards and how they work.
- Turn your day-to-day activities into learning experiences: Trips to the bank, store, or the ATM machine, for instance, can be a perfect opening for a discussion about your values and how you use money.
Conclusion:
The Role of Parents is very important In Educating Their Children On Finance. A child’s sentiments about money also play into his or her financial future. How do their parents feel about money? What emotions do their peers express about financial topics? Everyone develops a relationship with money, and as children mature, their financial sentiment solidifies. Those who teach financial literacy to kids must take care to help them to form positive money relationships and build their confidence.
Parents have to provide their kids a strong base to build on, by Introducing money, inculcating saving habits and explaining the importance of investment to their young kids.