• Tuesday, July 23, 2024
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BusinessDay

Educate your children on money management

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Children are not born with “money sense.” Children learn about money by example and experience, beginning at a very tender age. Parents are significant influence on what and how children learn about money. It is never too early to start teaching sound money management skills. Begin teaching basic principles of money as soon as children can understand that money is needed to buy the things they enjoy.

Much of what your children learn about money is not from the conscious efforts you make to teach money management. Children are great imitators. Children pick up your values, attitudes, and money habits by watching and listening to you. In fact, you do not have to say anything to pass along money attitudes, habits, or decision-making styles.

If you shop with a list, your children will probably shop with a list. If you always spend money before it is earned, you may have a hard time teaching children to save. Children learn from observing you and others in the supermarket, post office, bank, toy store, mall, even at home and so on… Many parents are amazed at what children have learned about money through observation.

Children need financial knowledge. At a time when kids are just starting to learn the facts of life, they also should be learning about their finances. Instead of a simple allowance, many kids are being given credit cards by their parents. Let the kids understand the valuable lesson in life that things can change in a second.

Finally, parents need to lead by example, even if that means cleaning up their own financial act, it’s like smoking and telling your kids not to smoke. Always educate your children the basic principles of finance, money management and help them to ensure that they develop a healthy relationship with and toward money, also allow them to recognise their unlimited opportunity to build and manage their personal wealth.