Most people list good money management as one of the skills they wish their parents had instilled in them at the early age. Unfortunately, many parents overlook this ability, particularly in developing nations where these parents do not make enough money for their families.
THE IMPORTANCE OF INCULCATING IN CHILDREN GOOD MONEY SKILL
Early financial education instruction to the new generation may aid in the development of good habits and skills including self-sufficiency, independence, discipline, confidence, improved mental health, and having a sense of control that will make them great partners and parents as they mature.
HOW TO TEACH YOUR CHILDREN ABOUT GOOD MONEY SKILLS
Furthermore, keeping a money box in the house is one approach to teach your children the value of saving. Lead by example and urge them to save or invest any extra pocket money they may have for a specific purpose, such as a trip or the purchase of a desired gadget or item. Your kids will gain a lot from witnessing you deposit money into the money box as well. Create a savings and investment account that provides interest for your teenager. Also provide a statement for them to review at the end of each month so they can get familiar with bank fees, interest rates, and other elements of banking.
Make your kids use a PowerPoint presentation to bargain for an increase in their allowance every few months and also involve them in drawing up the household budget. Additionally, this will also improve their presentation and negotiation skills. Have honest conversations with your kids about your previous financial transgressions. If necessary, show them your credit bills and warning letters, for instance, if you have missed a payment.
Inform your kids about alternative financial options, such as shares. Purchase some shares on their behalf, update them on the progress, and teach them about the factors that influence these kinds of investments, such as politics, the exchange rate and more. They will benefit from being more engaged, informed, and up to speed on current issues.
OTHER WAYS OF CONSUMING MONEY SAVING SKILLS
Lastly, encourage children to read age-appropriate novels, articles from Google, and YouTube videos that contain financial material. Learning the fundamentals of effective money management as if you were a child is perfectly acceptable even for adults; in fact, it may even be viewed as a means to cure your inner child.