To teach lessons in financial responsibility, discipline and good money habits, parents should note the following points:
The Real Deal:
Use real banknotes and coins to show preschoolers about the various denominations. If you have got children in grade school, you should educate them about electronic money, like ATM and credit cards.
Learn From Experience:
Give your children an appropriate amount of pin money and allow them to decide the way to spend it. Offer guidance, but do not control their spending. If they lose money or waste it, consider it as a valuable learning experience for your kids!
Help your children establish good money management habits with appropriate remuneration. Once they save regularly or keep basic accounts. Offer them remuneration, like bed-time stories, holiday activities and hobby classes. Allow them to realize it may be a reward and not automatic. Do not become overly hooked into giving cash rewards or expensive gifts.
Use desktop and online games, or interesting activities, to encourage your kids to find out more about money management.
Teach by example:
Children often replicate the behavior of others, especially their parents. If you take care of your money well, then you are already halfway there to passing on positive money management habits. Tell your kids that you simply exerting for your money to support the family and therefore the importance of paying responsibly and saving your hard-earned money. Inform them about essential household expenses, like electricity, rent, water on which you would like to line aside money to hide such expenses on a daily basis. When performing on the family budget, let your children observe, or maybe help you.
Teach Children to line Goals:
Many successful financial milestones are achieved by goal-setting. Encourage your children to line savings goals and work towards them.
Face your financial issues with a positive attitude and ask your children the family finances in an honest and realistic way, if you think that they are ready to understand money matters. Once they need mastered basic banking skills, encourage your children to find out about the stock exchange. Explore appropriate stocks and mutual funds together with your children.