Monetary principles for kids
With busy work and life responsibilities, parents worry that they are not spending much time with their children which may lead to developmental delays. However, the recent pandemic has led to parents staying and working from home, thus giving enough opportunities on spending meaningful time with their kids and bond with them.
Besides instilling social and emotional development, it’s also a good time for kids to learn good spending habits. We have been raised with the constant admonishment that “money doesn’t grow on trees”. The ongoing economic crisis provides a great incentive to teach children about the value of money and how to handle it.
Parents should start with the basic interaction of learning to save. The habit of saving can begin by giving them a money box where they can deposit coins or cash.
Then comes budgeting and spending wisely. The development of personal finance hinges on budgeting. This can be done by involving them in your weekly grocery shopping task and creating budgets. Parents should help limit impulse purchases by making a budget and sticking to it.
In today’s digital age, it is important to teach children how digital money works. A small portion of pocket money can be deposited straight into their bank account and guardians can monitor that. Show them how money is first deposited into your bank, which can then be accessed online or with a card.
Parents can also introduce the kids to the concept of money through games which are also a fun and engaging way of learning about monetary basics. The virtual lessons & activities of resource management, strategic thinking, working, giving, saving, and spending may provide thrills to the road to basic financial skills.
Parents should also instill the value of giving and teach the kids about contentment. They can pick a charity or even someone they know who needs a little help. Eventually, they’ll see how giving doesn’t just affect the people they give to, but the giver as well.
Educating your kids about finances is a process that can take time. But if you put in the effort and continuously communicate a clear message about money, you will instill good habits that will serve your children well. Start today with these simple money habits and you could prepare your child for the future.
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