It is essential to teach your children “Value of Money.” Before knowing how to inculcate good habits in children, we must know a little about the history of money.
If we study the economic conditions of ancient civilised society, we will come to know that people used to exchange goods and services for other products and services in return.
This system is known as a barter system.
This practice continued until money was not invented.
This exchange of goods or money is only meant to meet the needs of people in any civilised society.
The basic needs of people are food, shelter, education and medical.
From ancient society to modern society, there has been a significant increase in human needs.
In the era of advanced technology; everyone is aware of various things around the world.
As a result, the need for money is not limited to, meeting basic needs, but people have become competitive and ambitious. So, it has become very necessary to teach our children “Value of Money”.
They have ambitions and desires to achieve big things.
Whether it is higher education, assets, luxury items, or medical assistance, we require money for everything.
Money has a significant effect on our living standards.
As such the necessity of money has grown very high and it has become an essential part of human civilisation.
The most valuable gift that you can give your children is not money; it is the ability to think positively. The money will soon be gone, but the ability to think positively will go on to help your children be a success throughout their lives.Mary Kay
Therefore, it is also an essential aspect of teaching our children the “Value of Money” to live a secure and comfortable life.
Knowing the “Value of Money”, children will focus on their education and career.
Parents and teachers can do a lot to make the children aware of this aspect.
Here are a few tips which parents can follow to Teach their child “Value of Money”.
Firstly, Get a piggy bank for small kids
Parents should encourage them to collect the money received from their parents and the elderly.
When the piggy bank fills, go to the market with the child and get his favourite toy or something he wants to buy.
This will give the children a sense of saving and spending.
Secondly, open a Bank Account
When the child grows up and can have a bank account, then take your child to the bank to open a bank account. Explain to him/her how the money will grow in the bank. In the process of opening a bank account, include the child and explain the things related to the bank according to his age.
Thirdly, Give the children monthly allowance-
Give them some monthly allowance for their expenses. Allow them to buy a few things of their choice. Appreciate their decisions and also guide them on how they can get a good thing with lesser expenditure. This will help them to develop a sense of responsibility for spending money.
Fourthly, Teach them shopping-
Whenever you go shopping, take your child along and show him/her how things should be bought. Give them a little money to buy a product which is included in the shopping list. Encourage your child to find different brands of that product and see the price label of each brand. Explain to him how to buy a good product at a low price. Tell him how much money you can save with this method and buy extra things.
Fifthly, Parents should be role models for their children
Children learn most from their parents. Hence, parents should know themselves well about saving and investing money. They can teach their children about the value of money only if they also understand the value of money. It is advisable for parents to learn about investment from a certified financial planner
Sixth, Show them your workplace-
Whenever there is a chance, take the kids to your workplace and tell them that you need to work there to earn money.
It is to teach your child the “Value of Money”.
Seventh, Do not fulfill all demands-
It should not be every time that the parents need to fulfill all the demands of children. Parents should explain why they cannot meet all the expenses.
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