Small children are capable of grasping money management skills easily, if they are taught in the right manner. This is because when they learn the skills early, they sooner they will start applying them as they grow older. Children between 7 and 10 need to be taught simple money management skills by their parents.
Assign simple and suitable jobs around the house which children can perform without much of effort. Also, allocate an appropriate amount which the child will be paid as salary to the child. After the\he assigned job has been successfully completed by them, pay them their earnings. By doing so, the child will realize the value for his/her work and will also strive to earn more.
The next is to show the child how to spend his money wisely. Explain the three important categories that a child should do with his money - saving, charity and spending. Split it as 40-10-50 or 50-10-40, whichever is suitable to you. This way, they learn to spend some of their hard earned money on their favorite things, give away a small portion for others and importantly, save a portion of it so they can use them in the future to treat themselves for the great job that they've done so far.
Visualizing a savings jar getting filled up will show how they reap benefits from their hard work; similar to, how they feel when they see sprouts from the seeds they've sown with their tiny hands. Give the child a transparent box or jar where they can put in their savings amount every week.
Teach children to give away charity money to church or some old-age or children home. This will show they how blessed they are and instill values like humbleness and simple living in them.
And finally, let them enjoy with their own savings. They could be allowed to buy a favorite toy or dress or video game or even use them for their outings. These simple lessons on savings will teach them to be responsible for their actions and will definitely prevent them from falling into debt traps in the future. - 29971
Assign simple and suitable jobs around the house which children can perform without much of effort. Also, allocate an appropriate amount which the child will be paid as salary to the child. After the\he assigned job has been successfully completed by them, pay them their earnings. By doing so, the child will realize the value for his/her work and will also strive to earn more.
The next is to show the child how to spend his money wisely. Explain the three important categories that a child should do with his money - saving, charity and spending. Split it as 40-10-50 or 50-10-40, whichever is suitable to you. This way, they learn to spend some of their hard earned money on their favorite things, give away a small portion for others and importantly, save a portion of it so they can use them in the future to treat themselves for the great job that they've done so far.
Visualizing a savings jar getting filled up will show how they reap benefits from their hard work; similar to, how they feel when they see sprouts from the seeds they've sown with their tiny hands. Give the child a transparent box or jar where they can put in their savings amount every week.
Teach children to give away charity money to church or some old-age or children home. This will show they how blessed they are and instill values like humbleness and simple living in them.
And finally, let them enjoy with their own savings. They could be allowed to buy a favorite toy or dress or video game or even use them for their outings. These simple lessons on savings will teach them to be responsible for their actions and will definitely prevent them from falling into debt traps in the future. - 29971
About the Author:
As a parent, opt for budget planning software offered by personal budget planning sites which you could demonstrate to the child as he grows bigger. This way, you become an ideal parent for your child, giving him financial security at all times.
