“Every penny counts” the proverb we well-read in school has a fundamental sense in our life. The long term repayment of coaching good money habits has a vital role in life. The meaning of money and its saving must be taught to children at their correct age. As childhood is the raw clay stage to be mold in accurate shape, every initial and exact step is taken by parents for the enhanced fostering of the child. Each child has a unique understanding and expenses follow-on to conflicts. Parents can tutor their child about the use of money with applying different activities.
While accepted wisdom of teaching about the saving lessons for money to child, parents themselves go through many uncertainties. They face difficulty on how to create an open environment in which family can discuss the money issues? How the child should receive money? How children observe parent’s attitude towards money? Etc.
Beginning the financial socialization of children parents should bring into play some guiding principles like:
- Instead of order and straight them guide and advice them.
- Encourage them on their success as well make them learn from their own mistakes.
- Involve children in family money discussions and permit them to take decision apposite to their age in financial activities.
- Children needs to be on familiar terms that parents say “NO” to themselves too along with their children’s desires.
- Put in plain words to children the dissimilarity between the necessity and craving and make choices consequently.
- Tell children about the emergency expenses that can turn up unexpectedly and the savings can help at such bad times.
- Involve them in family grocery shopping and involve them in household budget management.
- Develop their interest towards the insurance policies and bank accounts.
At certain age like teens, children wish to make decision on their own without parent’s consultation. At this stage, they may be not pleased with household incomes. They may get tricky for handy money like borrowing from pals to satisfy their needs, requesting to exploit parent’s credit cards, may get stubborn to get what they need, etc. They may also set off to earn and save at early age. They learn money management decisions and their consequences and can see the standpoint of others for money.
Parent’s role as defined to grip teens must be friendly rather than inflexible parents. They must lead to leak to the facets on how to maintain the household expenditure. The guidelines must be set up to use of credits cards and cash emphasizing on savings and emergency outflow like medical. Children must be clarified on what parents spend on and what children spend on. They must be permitted to have discretionary money to learn to have grip over additional and unnecessary expenses.
Children must be involved in household purchasing like family grocery shopping and planning and budgeting on vacations, etc. Parents need to be transparent about the vital and necessary expense of household so they must know how to run a house in limited amount of money including savings.
Apart from home tutorial on financial savings sometimes the reality check helps to make your point more relevant to children. Every small one loves to act like grown up. Taking this for an advantage step children must be taken to bank. Every child has different maturity rate, they not only needs to get the lessons on savings but also must be module on growing money. They should be told about banks and how it works to secure their savings.
Parents must try to encourage interests in teens for saving as well as how to multiply the savings. The preliminary knowledge about banks can be initiated right from the children’s personal saving accounts in banks. This step help children to understand how every penny saved by them can actually multiply with the developing interest in savings further. Gradually parents can enlighten their little buds about the insurance policies helpful for their own future.
Beyond the doubts, parents knows the best for their children but sometimes they too need some expert advice to deal with complicated situations. Hence, the proper follow up of guidelines may help parents and their children to meet the common goal. Parents need to learn too that instead of uttering phrases like “money is not grown on tress,” or “I am not an ATM machine.” They must focus on teaching on the importance of money and its savings without harming the young and delicate hearts.