Teach your kids about money

Teach your kids about money

Nowadays, thanks to the advancement of technology, we have so many cashless payment options in our hand. They make life much easier for us. Through Pa

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Nowadays, thanks to the advancement of technology, we have so many cashless payment options in our hand. They make life much easier for us. Through PayPal or Apple Pay, it becomes very easy to spend or transfer money. However, there is a downside to this as well. Since we rarely use cash, it becomes extremely difficult for us to teach the younger generation about the importance of money. As per several studies, it has been found that very few parents discuss finances with their kids. To overcome this problem, several schemes and programs have been launched. One such scheme is Money Minds. It is a completely free program to promote finance skills among school kids, within the age group of 5 to 19. Tanya Jackson, who is the head of the corporate affairs, believes that such programs are extremely important for the development of a child and will give them a head start in life. It is our responsibility to teach children to spend money wisely. We should also educate them about the importance of savings.

Here are some ways by which you can educate your kids about money

1. Explain your kids about the source of all your money. They generally get pocket money without doing any work. Hence, most of them believe that making money is really easy. However, you need to teach them, that you had to work tirelessly to earn that money. Let them know that money is a really valuable thing and they should look after it very carefully.

2. You can also let them know that not everyone is lucky to get a good job. There are many people out there who are working on very low wages or is unable to work because of any illness.

3. You should also help your children to understand the difference between needs and wants. Teach them how to prioritize their spending. First they should spend on the things which they really need, and then they can spend on their wants.

4. Budgeting is also really important. You can teach them how you make a budget for your household spending and how to stick to the budget. In case of older children, you can also teach them how to balance books.

5. You can also teach older children about the different sources of borrowing money. Tell them that it is very important to repay borrowed money on time. Explain to them the different kinds of interest like compound interest, and how you are actually paying much more than your borrowed sum.

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