What Money lessons you must teach your child?
We all know that as a parent we all want the best for our children and help them in every possible way to make them better individuals. But we all do a mistake in our life. While children receive formal education from educational institutes, the education system teaches nothing about money and savings. Hence, it is our duty to teach them money lessons or help our children to form good money habits.
1. Explain your child the difference between Needs and Wants:
It is normal for kids to demand various things from their parents. There will be many things that will catch their attention. But, is it required to buy whatever your kid wants? Absolutely not! So, whenever your kid wants a something, ask them why they want it. You can tell them about other alternatives that they already have. In this way you can explain the concept the need and wants. This may help them to cultivate good spending habits in their later life. mutual fund advisor lucknow
2. Make them learn the value of MONEY
Give your child a specific sum of money on a monthly basis. Also, tell them that they get extra allowance if they will help you getting groceries or doing other household chores. This will help them to understand the value of money. The value of money is one of the most important money lessons that are going to stay with them for their entire life. The key is to make children realise that everything comes with a cost and they need to plan and work for it.
3. Enhance their saving habits
At this age make a savings habit. Many of us give piggy banks to our kids to help them save their pocket money or the money that they have received as gifts from various relatives. So, in place of normal piggy bank gift, them a clear glass piggy bank found on various shopping sites. As the amount of money is visible through a glass piggy bank, it may encourage your child to save more and help them to prioritise their financial goals over other things.
4. Tracking their savings and spending's
Help your child to track their savings and spending as it will result in good money habits as an adult. Before they begin their savings journey, tell them to note down the amount that they are saving in a diary. Once they achieve the required amount, they can open or break their piggy bank. Also, motivate them to keep a tab on their spending. This will help your kid to keep a track of their pocket money or save more if they wish to.
5. Include your child in money conversations
Many parents make the mistake of leaving out their children from some of the critical money conversations. Include your children when you are drafting the monthly budget, or planning to invest as it will also make them familiar with the different aspects of money managing and the situation you are at. Also, try to bring your children when you meet your financial advisor. While you may not understand most of the things, but kids quickly absorb and it helps them to build a perspective. health insurance provider in Lucknow
6. Be a financial role model of your child
We all know that Kids learn a lot by observing others. Hence, it is important to become the financial role model that your kids might follow. While parents must make their children understand the value of money, parents should be mindful of the way they are spending money, where they are spending money, and how much are they saving or investing per month.
Conclusion:
That’s all for now... As there is a lack of financial education, we as a parent need to help our children form good money habits. Therefore, make your child learn importance of money saving. Hope you find this blog useful. Thank-you for reading this article. For any query contact us.
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