Getting serious about money helps you to accumulate the same easily. Ask any wealthy person on the planet how he became rich and he will tell you that he listens to money when it talks. Making money talk is one of easiest ways to accumulate more of the same. Making your children talk with money is one the most important things to do in life. Inculcating the habit of savings in children need to start from when they are really young. Let us have a look at some value adding ideas to teach children the importance of the omnipotent money.

 

Start at an early age

Start teaching children about money right when they are young. Teach your child to save money in small chunks from the time they start their schooling. Take them to the shop and make them give the money to the shopkeeper for the things they choose to buy. This will make them understand that everything has a cost attached and does not come free. This will also make them understand the basic mathematics pertaining to money.

 

Make them save in a Piggy Bank

Buy a piggy bank for them even before they attain the schooling age. Make them save in little chunks in the piggy bank. Set a target for them and tell them they can buy what they want to buy once the Piggy bank is full. This will motivate them to save inculcating the habit of saving in them in a regular manner.

Design a spend plan with them

Set a target date for opening the piggy Bank making the experience a fun filled and excited one. This will motivate them to go in for the habit again and again. When a Piggy Bank is full or the set target date arrives, sit with the child and calculate the accumulation. Congratulate him on the feat. Plan how he is going to spend the same. Let the spend plan of the accumulated Piggy Bank proceeds have different avenues like buying something that he has been waiting for long for himself, donating a portion of the accumulation to a societal cause and saving the balance accumulation in a Children Bank Account. This will make him understand that all that is saved is not for spending in a lavish manner. This will make him a responsible citizen in the long run.

 

Introduce the Bank system

Filling the Bank voucher in the perfect manner is less important than teaching the child to do the same. Probably he will waste a couple of Bank vouchers not knowing to fill the same in the appropriate manner. Teach him to do the same patiently. Let him know why certain details are asked by the Bank in the voucher and the importance of providing the same. Take your child to the Bank with you. Spend some time there talking to him about the various process that happens there. This will make your child get a bigger picture about money and the way it functions.

 

Make cash payments

Ensure you spend cash for making payments when you are with your child. This will make him understand the value of money more so when he counts the cash to be paid all by himself. Cash payment makes children realize that by purchasing unwanted things they are not only frittering away their money but are also delaying their chances to become a millionaire soon.

 

 

Make them fill the Cheque for credit card payments

When you swipe your credit card in front of your children, ensure you make them fill the Cheque while repaying the debt later during the month. Swiping a credit card in front of the children tends to make them feel that it is an easy way to accrue things. When you make them fill the Cheque for credit card repayment, they will realize that it is his own money going out just in a delayed manner.

Make him your financial assistant

Get into the habit of accounting each of your monthly expenses. You can do this in a manual way or in your computer. Ensure your child is with you when you are on the job. Make him read out the bills one by one and you make the entry. This will make him realize how much of spending happens in each aspect. This will help him understand the importance of money in a holistic manner

 

Explain the source of things you buy

Without making it a class room session, in a casual manner, explain to your child where the vegetable and fruits come from. Explain to them the hard work involved behind the production of the products you purchase. This will make him understand how money works and the various concepts related to the same. When he starts understanding trading at its preliminary levels, he will get educated on money concepts like profit and loss.

 

Fun money party

Arrange for a small party within your house or colony. Fund them initially to set up a food stand. Encourage the children to make easy dishes like fruit juice, sandwiches and such simple things. Announce about the party venue and time to all concerned well in advance. Charge the visitors for the items they eat.  Collect the initial amount you invested for setting up the food stand from the children. Give them the balance money to share between them. This will teach them how businesses work in the real time. This will also make them realize how tough it is to earn money. This may also motivate them to save money for the initial investment towards the next ‘food stand’ party so they can save the profit they earn out of the same.

 

Teaching children about the importance of money will inculcate the habit of savings in them. You can do the same by setting finance-related goals for each family member so the competitive spirit will drive children towards achieving the same. Get them games like Trade which will also make them realize the role of money in every aspect of life.

 

 

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