The financial skills are an integral and important part of life still the schools do not teach the value of money to kids. Thus as parents these responsibilities comes on to us. To help our children live a life that is financially fit we need to teach them the value of money. We need to teach them the importance of money as per their age. Gradually bigger concepts need to be introduced. As early as at the age of seven the kids need to be introduced to the concept of money.
Turning your day to day activities in to the learning experience, can help you to teach your kids the value of money. It could be a visit to the fruit market give them 10 rupee note and ask them to buy a fruit of their choice. The concept or let us say the skill that they would use to buy the fruit will lay the stepping stone to their knowledge of money, spending, choosing, saving and sadly the most important factor the loss of forgone alternative.
Loss of forgone alternative is an economic concept that specifies the loss of a commodity that a person had to face as he spent the amount on other commodity. This concept will play in the kid’s mind like he could buy guava or orange with the money. Buying one would keep him away from the other and at the same time there would be something that he actually wants to buy but has to avoid due to cash constraints.
Parents are the biggest influence on kids financial behavior so the sole responsibility lays vested upon us as how we bring them up as mindful consumers, investors, savers and givers.
One thing that you always need to instigate in the mind of your child is that he has to wait till he buys something or he has to earn or save before he buys something. Earn in its literal term will not be taken it refers that the child by his behavior or good deeds will have to earn the reward for the thing that he desires to buy. Money lessons that have been instilled in the kids at their formative years sets the tone for future.
Get your child three jars one for spending, one for sharing and one for saving. This will help them to allocate the money they have. Once they have enough money in the saved they can get a pricey toy or from the spending jar they eat ice cream or anything. Important is sharing jar as to with whom they share their siblings, friends or charity. This will draft them as better person who has compassion for others and comes forward to help others. Inculcating this value in them will go long way to make them worthwhile for humanity.
Also teach them the importance of the fact that money is finite but wants and desires are not. So at every stage of life they need to learn to make choices. While making the budget ask their suggestions also and explain them about their so made decision. Ask them about your decision of saving for their education or family vacations and other such things.
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I do the three jars with my oldest. She is three and we push the importance of saving money. So far she chose not to spend any of her money because she wants to save it until she is older. Great post
Such a valuable lesson to teach our kids.
Thanks for the advice it’s well written
nice lesson for kids
Thanks a lot
This is a great article especially for my generation that will be having children. Money is a big thing to teach children and knowing how to do it is something a parent should know. Thank you for this.
Loved the three jar way. Never knew this.
Thanks for putting this up. It was really helpful
I loved the way you explained each point to teach child offcourse value of money should be taught from early childhood.
It is good to instill in kids the concept of savings and the value of money from a very young age. Definitely a much needed and a valuable lesson.
I always Ask them to respect the hardwork which are done to earn money. If they deserve it they will get the money. Great post
Teaching kids financial literacy right when they are preschoolers is very important, great tips!
Nice post Priyanka… Kids also need to learn the value of money, your three jar way is really a great concept.
The three jar way is an interesting way to teach kids about the value of money. It will help to take care of themselves, others and their future!
This is a must read for all parents
This is a great way to teach children the value of money.
Seriously we need to teach our kids the importance of money
This is a well written and absolutely relevant for parents like us whose kids are in growing phase and understand things money can do. This is the apt time to teach them the importance of money
So true it’s really important to make children understand the value of money
Nice tips on how to teach the kids the value of money. It is really important for them. Well written
This is such a great post.. Will make my kd follow them
This post was the need of the hour. We must teach our kids the value of money and also avoid fulfilling their demand every time.
That is so interesting and useful… It is really important to teach kids the value and importance of money
Very nice post.. Kids should learn the value of money since early age.. Appreciate your tips..
I like ur detailed post very nice teaching.. It is so important for future
Great post aan useful too for all parents
This is one of the very important things you need to learn in your life, but i think the only time you really see the real value of money is, when you start earning it.
Wow!! Such awesome tips and tricks to make children learn 🙂