Someone who thinks about
financial responsibility will never allow his/her children to spend money without his/her
guidance. Kids are unknown to exhausted money affairs and they do not even acquainted
about the value of money. It's all your duty how to teach them their financial
responsibility. A five year child-boy can't do more with money but spend for
his toy, chocolate or for fun. To allow them to get involved in small finance
managements would be the first step for future financial obligations. How you
can teach financial management and responsibilities?
·
Don't give money to your children without any cause.
Hand them a task or some employment so that they can learn how money is
important. After finishing the task, pay them for their job. Sometimes, you
should make them to get money instead of gift on some special occasion like
birthday. Tell them importance of money in their life and how it can secure our
future. You can let them watch financial TV channel and help themselves to
understand financial issues. Teach them in very easy language and include some
interesting examples. Show them financial graphic, visual models or animation videos
if possible.
·
Second thing is how to teach them to spend money
wisely. Very initial thing to teach them about money saving. Tell your kids how
to spend their precious money after saving. Realize them that every saved buck
is equal to a made one. Allow them to spend two third of total money. Set money
spending criteria in their mind. You can divide this in three part-
·
First for
Essential Need- first they should spend for their very necessary things
like school uniform, lunchbox, shoes etc. If at the time you have almost all
these necessity then save some money for these kinds of need in future.
·
Second
for Desire- Every child have a bunch of dreams and want lots of thing in
their life. After spending on necessary things they should think about their tiny
dream like bicycle, video game etc.
·
Third for
Fun- afterward you can allow your child to have some fun enjoy his/her life
by spending on entertainment.
·
You can allow your child to go for a job when
he/she has grown enough to work. It will give them virtual knowledge of finance
with decent earning.
Teaching financial responsibility
to your children as early as possible is a very good and fruitful idea. Let
them grow up and make their financial decision themselves.