Make your Child Financially Literate
Every parent strives for a better future of their children
. And for this they spare no expenses for their education. While academic education is very vitals, what many children miss out is knowledge about Money and Finances. It just defies logic that a person is not taught about one of the most crucial aspect of any person's life - Money. This financial illiteracy may put the security of a child in danger when he grows up. Moreover, he can continue to make mistakes that his parents made all their life. So how can you teach you child the value of money?1) Discuss Money Frankly: In our culture, children are kept out of the financial matters for many reasons. It may be because parents are not comfortable about talking money in front of their children or do not want to share details or simply so that children do not worry about financial matters. But if your child doesn't get information from you then he won't get correct information regarding money. The value of money won't be inculcated in your children. Introduce your children to money. Guide them on its value, how to save it, how to make it grow and how to spend money wisely.
2) Make them see the difference between needs and wants: Children normally do not understand the value of money and how difficult is it to earn money. This makes them spend it unnecessarily without giving it another thought. They often succumb to peer pressure. Make them understand the difference between necessities and luxury.
3) Set Financial Goals for Children: Encourage your children to set Financial goals for themselves. If they want a toy then, teach them the value of money, savings and priority. Make them aware that they need to prioritize between their wants. Encourage them to learn more about the stuff they want to purchase, if it's the best choice in terms of money and time.
4) Encourage Savings: Give them a piggy bank where they can save their money. Ask them to save apportion of their allowances. Also, teach them about earning on interest. Match their savings with your money. Help them with maintaining a record of savings, expenditures and investments.
5) Be an Example: Display financial maturity yourself. Take them along for shopping whether it is for grocery or refrigerator. Show them planned expenditure. Shopping will them valuable learning experiences. It will show them how money exchange hands, how calculations and barging is done. He will learn how debits and credit card work.
To sum it up, your child needs to understand that investing and spending money can be loads of fun if it done in a planned and systematic way.
Make your Child Financially Literate
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