Teaching Children about Value of Money & Importance of Financial Planning - Teach them young, watch them grow
Inculcate the values of financial planning in your children from a young age. That’s the best gift you can give them on Children’s Day
Teaching a child the importance of healthy finances is not just a gift to them but also a means to empower them to have a bright future. While schools are now adding concepts like finance, savings and taxes to their curriculum, it’s still on a basic, informal level. Therefore, it’s important for parents to take the lead in this matter. So, how should you inculcate the value of financial planning in children.
Start them young
Children start showing strong traces of their understanding and potential at a young age. A three-year-old, just starting to learn her numbers and counting, can easily understand the concept of money. Start with a handful of coins and ask her to count them. Explain to her that 5 counts with the number 1 on it can buy her a small packet of biscuits and 10 coins with the number 2 on it can buy her a sheet of stickers. Make it even more fun by gifting her a piggy bank and tell her that all the money she puts in there belongs to her and that she can use some of it the next time you’re out at the supermarket or in the mall.
The Value of Money
There’s no point in having money if you don’t know the value of it. Explain to your child that money has to be earned and doesn’t just come along for free. Help your child earn some money the hard way. One fun and exciting way to do this is to get them to do simple, extra chores at home in return for pocket money. Get them to participate in a festive spring cleaning and reward them for it. Then sit down with them and count their earnings. Once you’re finished with the exercise, ask them what they would like to do with the profits. Would they like to save it? Spend it? Donate it? Encourage them to save the earnings to buy something they have been coveting
Lead by example
Children always emulate their parents. It is thus important to lead by example and exhibit habits and behaviour’s that you would like your child to pick up too. One way to do this is to take a walk through a market and point out things that you need – food, clothes, household supplies – and things you want – expensive mobile phone, state-of-the-art television and designer handbags. Tell them that you’re happy with what you already have, and chances are, they will pick up on this behaviour and learn to be happy with what they have too.
Learning the value of money and the importance of financial planning early in life will stand children in good stead later in their life.