Children can grasp good money management skills at early age, if it is taught in the right way. The sooner they learn the ropes of managing their money, the faster they will learn to use it wisely. The earliest age to do is between 7 and 10, because that is when they will start to learn basic money matters in school too.
The first step is to allocate a meager amount which needs to be given to the child after one week. Assign suitable odd jobs around the house which they can complete in a short period. Once the assigned job has been completed pay them their allowance in full. This way, the child realizes the value of his/her work and will want to earn more.
The second step is to show the child to spend his money frugally. The salary must be allocated to three categories - saving, charity and spending. Apportion the money as 40-10-50 or 50-10-40, whichever is suitable. Now the child learns the basics of: spending the money on favorite things, giving away a part of it to charity and finally, to save a portion of it for themselves. These simple lessons when learnt the hard way, will stay with them forever.
The first lesson that they learn here is 'Savings'. This can be taught by giving them a transparent box or jar into which they pool in their savings. Visualizing the savings grow has a positive effect on them; similar to, when they see sprouts from the seeds they've sown with their tiny hands.
Values like humbleness and simple living can be taught through charity. Take children to some old-age home or orphanage so they will realize how blessed they are.
Now that the financial classes are finally over, take them out buy their favorite toy or dress or video game. These small lessons on savings will remind them to be responsible for their actions and will prevent them from falling into debt traps in the future.
Author Resource:
As a parent, use budget planning software offered by personal budget planning sites which you could demonstrate to your kid as he grows bigger. This way, you become an ideal parent for your child, giving him financial security at all times.
![[Valid RSS feed]](http://www.look4articles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
![[Valid RSS feed]](http://www.look4articles.com/images/rss.jpg "XML Feed For RSS")