Kids learn about money from parents. Since school lacks in teaching them, it becomes your responsibility to teach your children about money. The sooner you start the better they will be in money management.
Even though my father was into business he never took an effort to teach us the finance part of life. For me, it was quite of self-learning and more of listening to people who were successful in wealth creation.
It is a simple age-old tradition in all Indian homes which gives kids the basic idea about saving money. This develops a habit of saving among kids. Make them live frugally and save money in their piggy bank. When I was young I used to get money for my birthday and during visiting our relative place on summer holidays, a main source of income to my piggy bank during my school days.
If you think your children are capable of understanding the concept of Interest. Open a savings account and let them know the money they save in piggy banks can generate interest. So they get to know about interest income. When I was at school, the postal department brought a savings bank account scheme for school children which are exclusive for students and can maintain zero balance.
When they are adult enough to handle money, ask them to maintain a book to track their income(Generally the pocket money ) and expense. This will let them track where they spend more money. Allow them to participate in your grocery shopping and, introduce the concept of smart shopping.
Nowadays most of the school encourages student entrepreneurs. Allow your children to volunteer for summer jobs or help them learn your business and make money. Let them know the hard way of making money. Once they acquired basic financial knowledge, teach them about investment and returns, give them task about knowing the stock market, mutual funds and how money is used to make money
In India, most of the parents have the culture of making it easy for their children, saying if I couldn’t have this at my age let them have, this actually spoils them and children don’t develop a sense of value for money.
Make them set goals and work towards them, teach them the difference between want and need, make them spend accordingly. Allow them to participate in your monthly planning or your future budgets like college fees, higher education. Which will give them a sense of financial responsibility
Well my parents never made it easy for me… like I can get the latest gadgets, clothes, but when it comes to money, I still have a hard time convincing them…
Ha ha well you are lucky that way then 🙂
Yes, that has allowed to me to push myself forward so that I can earn by myself and understand its value!
Good, see the push that gave you the sense of earning your own money 🙂 is what every parents should give and also teach investments to them 🙂 Because as i always say, saving only makes banks rich 😛
True indeed!