As the world progresses, we learn new things. A 2 year old child can operate a computer, a tablet and a mobile even before he/she learns the alphabet. When they can be so tech savvy at this age, why shouldn’t they be money savvy too?
We Moneymindz feel that when a kid knows how to operate technology or at the least, gadgets at an age where he/she should be exploring life, he/she should also learn and know how to handle money. Make your kids responsible with money and neither you nor your kids will regret it.
Here are a few tips from your own financial expert, Kuber Mindz for you to teach your kids. Remember, your kids learn from you. Hence, you need to be an example to them.
Do not give him/her allowances for household help
People who give their children money in return of household tasks are essentially teaching them to be corrupt (Do this and I will give you a bribe). Hardly do they realize that they are teaching their kids to give and take bribes for doing their duties! Let your kid go to the store to buy household goods, let him/her go to the market, let him/her help with the household chores. But you should never give money for that! It’s not pocket money (or whatever fancy name you and your child call it), it is bribe! That’s corruption at the starting level!
Explain where money comes from
If a toddler can understand gadgets at a tender age, he/she will understand that his/her parents work for a living. Explain where money comes from. Explain how job choice affects your income. Explain them what working in a job is, what freelancing is, etc. Explain them why they go to school (to go to a good college so that they get good jobs in future).
Teach them how to save
Inculcate in them a habit of saving money. Be it their monthly allowance or gift money, they have to save that money. Teach them why it is important to save money. Don’t allow them to waste money. Saving should be a priority. Also teach them the basics of investing.
Learn to say “No”
Teach them the difference between a “need” and a “2want”. A need is a basic necessity like food, shelter, clothing, medicine, education and such other basic rights. A want is just a desire which will fade away sooner or later. When you suspect/know that your child wants something they will be bored of, don’t buy it. If they still want it, let them buy from their savings. Once they pay, they should realize that the money will never come back to them. If they don’t understand, explain this to them. Say “No” and teach them to say “No” when they don’t like something or cannot do something. Let them understand what delayed gratification is.
Through this article all we tried was to make you aware of your responsibilities towards your kids to make them learn the significance of financial planning from a young age. Our Smart Financial Advisor, Kuber Mindz shared an idea with a motive to help parents raise their kids building them into responsible citizens.
You can avail more tips from us. For more information on this feel free to visit www.moneymindz.com or give a missed call to 022-62116588.