Importance of Money Basics for Children
Children's financial literacy, is one of the basic education that parents need to focus on in their growing up....
Every child should learn money management right from a young age, cause the habits developed at a younger age go with them through out life.
It is important for a child to understand how to spend and spend in a way that is in their capacity. Giving them a foundation on money basics will positively impact their life when they grow up and have to manage their family and home.
Specially in the age where money is in the form of cards, how will they understand how much to spend and what is savings It is difficult as they keep watching their parents using Credit/Debit cards for payment towards almost everything, hence it's all the more important to teach them that the spending has to be in equivalency to the earnings. and then there also has to be room for savings.
A lot of parents do complain that their child do not understand the importance of money. Are we supposed to held them responsible for this? They have learnt this from their parents. The money basics of earning, spending and saving can be taught to them from a very young age through various forms; like giving them pocket money and making them accountable for the use of it, also making them understand that a part of it needs to be kept aside for emergencies.
Parents can teach them in a play form like buying/selling of products. They need to know that if they have 10 then what they need to buy has to be within that amount of 10 only. Giving them a piggy bank is an important thing to make them understand on the saving part for the future spending.
Make them understand their spending on the Needs against Wants, they may want many things but they should also learn and understand that everything they want may not be possible to get.
They need to know that there are some basic expenses always in life like paying utility bills, rents, fees and after all the basics are met and considering little saving the additional amount can be then used up for the wants.
Help your child build up these skills right from a young age, they are important and will definitely benefit them when they grow up and start earning.
Many youngsters face this problem when they just start earning, they have not learnt their money basics lessons and hence they are not in a position to manage their finances. They think whatever they earn is only for their own spending on their luxuries. They have not learnt to spend in their capacity and hence many then lend up with overdue Credit card payments. That should not be the case. They need to have an understanding of sharing responsibilities, taking care of the needs, saving for future.
It's a core responsibility of a parent to boost their Child's financial literacy for them to be capable of managing their finances at every phase of their life.
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Very special article and very important thank you
Yes that is one very important point. Children should learn to donate and understand there are many underprivileged children who they can help and make a difference. Many thanx for sharing your thoughts @roselover
Excellent post, I fully agree with this it is very important as parents we do our best to help our children understand the importance of managing finances especially saving money for bills and also trying to save for the future or unexpected expenses.
I'm actually incredibly bad at this though, so it is very good you reminded me in this post how important it is. Often as a parent you wish to give your child as much as you can, but giving in to their wants can be damaging in the long term - unless reserved for special occasions or to reward good school work.
#thealliance
Thank you @c0ff33a for sharing your thoughts, we get very emotional when it comes to children and I have also made these mistakes of giving into all my son's demands but thankfully at the right time I could balance. Our life is all around them when they are growing up and there are so many small things that we overlook.
so logical and useful topic
relationships with money are extremely important in the modern world, and studying it is not less important than any other issues and sciences (if not to say - much more important).
it's a big question if all knowledges the school gives will be be used in the future life, but money surrounds us every day.
I often ask myself why ou school programme is made in such a strange way: it doesn't include many important subjects, instead it consists of so much unnecessary information.
are you satisfied with quality of education given in your country?
Thank you very much my dear for bringing your views out here. Our schools are only focusing on the standard traditional subjects which have been going since decades. You are so very right, it's high time they need to revamp the curriculum's and bring in some subjects which would help children deal day to day situations of life.
Well in our country there is a range when it comes to education but a good quality education here means very heavy fees which all may not be able to afford. Education has become a big time business, a play group for one and a half year kid will charge fees nothing less than 2k to 3k $ yearly, which is very heavy compared to the average earning capacity of our country. But again India is at extremes, there are super rich and then there is one set who is starving for basics and the most impacted are the middle ones. It's all very sad situation.
Hi friend, the most important lesson for life, how to earn and learn money we don't learn at school. I think it is the most important lesson which should be teach to the children from the beginning of their lives. What a collection incidents, I have also posted a little article about it. Thanks for sharing your thoughts, I like it so much.
Yes, our schools fail on some of the most important topics which are so important for children. I will surely go through your post. Thank you @maya7
I so agree.
When I was a stockbroker, and saw my friends modeling terrible financial habits for their kids, I approached my dad with the idea of writing a book on basic finances for kids . . . he was a retired school teacher.
I thought it was something we could do together, his knowledge about child psychology combined with my skill in writing, but alas, the idea just didn't fire him up, and so it never came about.
Yes, financial literacy in children is vitally important and desperately needed, but when their parents keep themselves from becoming financially literate, it is an uphill slog.
And our schools continue to graduate high school students who couldn't balance a checkbook to save their lives.
If nothing else, high school juniors and seniors should be taught how to budget, balance a checkbook, and read basic financial and legal documents; but instead, we are throwing them to the wolves with none of the information they really need to lead successful lives.
It is borderline criminal.
That was such a wonderful idea of writing a book on this subject, I am sure it would have been very helpful for children. I hope you still can take this up.
Very true I can see my own son struggling with some of the very basic money management. Schools should bring in lessons which will be useful for children in managing their day to day living.
Thank you for sharing your thoughts so beautifully out here.
Yeah, I'm still thinking it is really needed. Sort of "A Wrinkle in Time" for finance for youngsters . . . I know there is a way to make it entertaining, while still making it relevant, and keeping it simplle enough that the principles can be used daily.
I have a couple of friends who are teachers, so perhaps I can get them on board. Or maybe my cats can co-author it with me. My cat Bear is a wise one. ;-)
I think playing monopoly is a good start on the learning path. Especially if they havnt really learned about money in a concrete way. Also there is a book I read and it has some good principles. Rich dad poor dad for teens. It really made me think differently about assets and how to acquire them when I was a kid.
Rich dad poor dad is a good book and recommendable for children to read. There are many ways we can give the money basics to our children, monopoly is one good option.
Or if you want to make financial success advice distilled a quote from kiyosaki is that the poor buy liabilities and the rich buy assets. Whats interesting is that the author was a millionaire and homeless in the same lifetime.
your post is very good friends
You can learn perfectly when your mind be fresh.In chilhood every child has a fresh mind.The child can learn evrything which he can know from his parents.So,I hope every parents should teach their child about thus.Then The child become strongly know about it & do it in his future life.
Children have sharper memories and hence it's good to give them these basic education in their growing up stage for their better management. Thank you for sharing
Yes most likely we as child develop our psychology towards everything by inspiring from our parents. It's parents duty to teach child right things including spending of money. You are absolutely right about parenting.
Thank you @gpalav for resonating with my thoughts.
Nice post