Do you find it annoying to buy one toy after the other, and, yet your child keeps demanding a new one? Do you get tired of dealing with the wastage of clothes, food, and toys by your kids just because they have their own choices, preferences, and likings? Do you wish to teach the true value of money to your kids but do not know how to do that?
Perhaps, you are on the right page as we are here to help you teach the very basic financial management skills to your child. Before going on any further, let me share with you an interesting fact about kids. Kids are like mini-CID’s who have their eyes on you every second. So, to teach them successfully the true value of money, it is you who have to practice the same first.
The famous saying that goes about the kids is that ‘Kids may ignore doing what they hear but, they will definitely do what they see you doing.’ This saying has proven itself true generations after generations.
So, the first step that we need to take in educating our kids on finances is to handle them well ourselves. As parents, you are constantly on guard of your little kids around. So, you need to put your best foot forth in teaching kids the right ways of living.
Here, is what you can do to make kids learn the value of money:
- Practice wise living: First and foremost way of teaching kids is to practice practical living habits. If you can stop yourself from buying the eleventh lipstick, or buying the 6th jeans for yourself then this is will be observed, learned and practiced by your child when he or she grows up.
- Educate your kids: You need to educate your kids about good financing habits. For this, you need to teach them the value of every single penny.
For example: Buy a piggy bank for your child, and, encourage the child to save one rupee coin in it every day. Ask your child to open the bank on every 10th day. With 10 bucks in hand, you must take your kids to buy a small eraser or pencil or chocolate worth 10 rs.
This will teach your kids to understand the value of money. You can scale up your child’s income by increasing the money input from 1 to 4 rs in a day. You can also give some tasks to your child each day which if he or she completes then he/she is given 4 Rs to add to his piggy bank. So, this is teaching them the value of money as they are earning it by finishing some tasks.
- Increase the habit of saving in your kids: Explain your kids the value of saving money by teaching them about the importance of money. Involve your kids in small buying decisions in day to day life. Give them a certain sum of pocket money and let them save a small amount of money, which can add up to give sufficient money to buy a favourite toy or food once in a while.
For Example You can ask kids to choose to holiday between two different destinations. Give them the final costing of each destination but ask them to list the positives and negatives of each destination. Of course, kids are kids and they see the world with their own small minds and may come up with lame suggestions. But, soon you will see them becoming smarter each time you make them do this exercise.
Also, they will learn to evaluate the value of money before buying anything abruptly.
- Limit the expenses: Pampering kids with toys, chocolates, clothes, outings are great but there must be a limit to everything. By limiting the number of chocolates consumed each month, or number or toys bought each week, you are actually teaching your child to keep the expenses controlled.
Human desires will always keep growing unless they are strictly checked. It is the human needs that should govern our buying behaviour rather than human desires. This is one basic thing which if your child learns, then, he will not only be able to manage his finances well but will always be happy and contended.
- Teach the kids to wait to buy the best deal: Impulsive buying behaviour is extremely dangerous and seldom does any good for you. Your child may be impatient to get his favourite toy or holiday or cartoon character but you need to teach the child to be patient enough to buy the right thing.
For this, you will have to be a patient buyer yourself. Always try to find the best deal online before jumping on to buying things. Moreover, teach your child the importance of mindful buying in the form of stories. Slowly the child picks up all the values that he sees his parents following.
Warren Buffet is the best example of practical living. Despite being the richest man on Earth, he lives in the same house in which he has been living for decades together. He lives with necessary facilities and has taught his children the same principles to live with. As per him, it is our highest responsibility to bring up our children the best way and nature has bestowed us with a golden opportunity to help them grow into wonderful adults with good character.
Last but not the least, Warren Buffet is known to have grown so rich as he started investing in shares at the young age of 11. He firmly suggests teaching your kids to start investing in shares early in your guidance. As your child grows up, the investment multiplies to create riches beyond imagination. This is a wonderful piece of advice that I think is well-taken by all educated parents.