The Importance of Teaching Children About Money

Dear Steemit Friends

Is it important to teach our children to learn about money? Some disagree that the school age children may not be taught about money, but the others agree that we must teach our children to learn about money. I personally see, it is important teaching them about money and the ways to handle it. In doing so, the kids must be firstly developed in dealing with financial skill from early age so that they will be ready for the their financial challenges of adulthood. It is all started by teaching them good foundation and showing the children the basic such as how to budget, spend and save will establish good money habits for life.

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At school, teachers encouraged their students to save money by handing out a saving book for each children. Teacher will calculate at end of school year the saving of the children. It is another way to teach them how to handle money by saving it in every school day and it also teaches them about the value of money through the real life situation and understand where money come from and how to earned. It can be done through involving our kids in discussion about family budget is a way we can talk to our kids about money. It will help them to figure out about the cost and spending and how much can be saved for other things.

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The children will naturally ask for the game, or the things that they don't have yet, like bicycle, or the latest game. There, we must teach them to understand the difference between need and want. This will help them make sensible spending decisions from a very young age.Parents should reinforce through words and actions that it’s important not to spend more money than you have. There are some ways to teach them about money to the children

Show them the money

It is never too early to teach your children about finances, especially as money can seem almost invisible to them at times. Internet banking, online shopping and card payments often mean some children hardly ever see notes and coins. If they do, it tends to be notes coming out of a cash machine, so start young and tell them that the bank is looking after the money you earn. Play shops not just with plastic toy coins, but with real cash.

Make saving fun early on.

Giving pocket money from around age three can help children better understand the value of money, especially if you encourage them to save towards something they dearly want. A good way of encouraging saving at any age is to reward them, either by matching what they put aside or agreeing to put something towards it. If they pay for something with pocket money or birthday money, they know exactly what they are getting for their cash.

Count the cost.

Talking about how you earn your money and how you then spend it is an excellent life skill at all ages, and helping with shopping is a great start. By the age of 10, they should be able to go into a shop and buy a snack or drink, and know exactly how to count out the money and the change they should receive.

Teach the Children to Budget

Start by always giving them pocket money on the same day. Allow your children to plan and budget for a family event to practice their budgeting skills.Once they are old enough, encourage them to write down what they spend so they know exactly where their money goes.

Encourage Charitable Giving

Introduce philanthropy to your children early and they will likely become eager volunteers and donors. The children will understand that we can help others with money. Remind your kids to share their wealth. Teach them to set aside a portion of their priority. Savings for charitable causes.

Let Your Kids Make Mistakes

When you’re ready to give an allowance, let your child spend it freely, within the parameters you’ve set (no R movies, no tattoos). Show him how to set a budget, but don’t use the money to control your child’s behavior, and don’t bail him out if he spends it too fast and asks for more.

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Conclusion

Many financial experts and educators believe that the earlier kids begin learning about money, the better their chances to manage their financial stability in the future. It is good opportunity to help our children to set up financial responsibility since earlier age. However, there are also many adults hesitate to teach their kids about money for a reason that they do not have confidence in the way they’ve handled their own finances. We may not worry too much about how the children take care of as long as we give them the clues how important financial skills are to navigating life throughout the financial lessons.

Reference

How to Teach Your Kids About Money