Money Management for our Children
Money management begins at home. Passing on money management knowledge to our children from an early age will be beneficial to them as well as to you. Money management is a vital part of life. Money is required for everything from the moment of our birth up until and even after we pass on. Generating an income, the investment and the saving of our money all require successful money management.
Parents need to think about how they are going to help their children realise the real meaning of money and its management from as early an age as possible. Here are some tips that may help parents think about ways to teach their children about money management.
1) Money comes into being as soon as children begin to explore new things. A child’s request for a new toy should be used as the beginning on the teachings about money. Make your child realise the relation of money in the purchase of that particular toy and how money is necessary in the process of producing that toy.
2) Encourage your children to play interactive money management games. There are many games on the market for children of various ages that are designed around the management of money that you can choose from.
3) If as a parent you fulfil all of your children’s financial needs they will not be able to understand and eventually not respect money when they are older. Give your children small tasks to complete around the home, with their reward for completion being the item that they want.
4) Have regular financial meetings that you involve your children in. This will make them aware of the family’s financial state and help them in learning about money in a more real way.
5) Ensure that your children learn not to waste things. Teach them that everything they come into contact with such as food at meal times and toiletries they use to clean themselves are purchased with money. Show them that anything that they waste is the same as taking money and throwing it away.
6) Assist your child into becoming financial independent. Help them to manage their own money. Help and advise them when they begin to show signs that they are not managing their money in a good way. All of this will help your children make their own financial decisions wisely on their own.
A parent’s role in the growth and development of their children is central to them growing into sound and responsible adults. Parents should take an active role in teaching their children how important money management is.