Money Related 5 Vital Facts That Every Kid Should Be Taught At Home
Kids are influenced by its’ family. If you teach them good things they will study the good things and vice versa. It’s true, if a kid is given some money, he or she will never think to save it for future use. They might spend the whole money instantly on sweets or do something like this. Now we can consider the kids as irresponsible for their childish behavior saying that “Kids being Kids”, it can be an incorrect notion. Another possibility is that their parents might be blamed for this.
Apparently we should not expect that a kid would be more cautious about spending money. As per a recent study that concludes with the fact that the kids’ adult money habits grow when his age is seven or eight. It is factual that we have more things to guide our kids to make them economical and here are some notable tips that we have compiled so that their knowledge about money can be made effective and equally interesting.
1. They should know about the reasons of given money:
While you are giving money to the kids, make them realize the cause why they are given the money before anything else. And the kids should be made conscientious for their own money within the earliest possible time.
We should make the kids realize that they have to do at least a little for earning money. For an example, it can be any sort of works like homework, chores or even good deeds. Here, the reality is that the kids should be made understand that it is not easy to get the money. Meanwhile, the kids must be taught about the upshots of any failure to maintain their end of the deal.
Even when they are gifted some money, then it should be made clear that they are getting it as a gift not for their hard work. All the nearest people to them also understand this and it must be ensured that they are getting it not just because of they want it.
2. Encourage them for saving money:
Most of the kids are not conscious about saving money. To grow the saving tendency, open a savings account for your kids and encourage them to save at least 10%-12% of the cash they are given. They also need to be taught about how to transact money and, at once you must monitor their balance in order to ensure that it is not being spent heavily.
It is totally fine if you give them an extra for saving, but the main objective is to make them encourage for saving a little bit from the money in case of their needs.
When they would be matured then you should teach them different ways of saving money and let them choose how and where they will save their money.
3. Learn through video games:
Kids are fond of video games. The reality is that very often video games are considered as an awful rap, but the one thing is that, some plots might have in the video games that can teach someone a lot about real life. In many video games, there are banks, markets and jobs, and sometimes, it is played with own economy. By playing this type of game, the players can come to be trained about the processes how to save the points that they have earned.
4. Learn the basics things about money:
Both the meaning and reason of money have always been a mysterious fact. Many people struggle to grasp the inner meaning of it and no one can blame someone if he is one of them. During our childhood, we weren’t taught in details about money and we even did not get any guideline in the school about it. So if our kids are taught properly about all the aspects of money like-its creation, money lending and money saving, it has a great chance to learn about money. It might be much more helpful if you would include them as one of the associates of your family’s financial conversation, and then he will understand the basic functions of money. There are countless online resources where can be accessed without paying any fee. These online courses will help them to know about the concept of business and the complicated aspects of it.
5. Entrepreneurship at an early age
While the other kids are playing around the neighborhood, there might have a kid who builds his own little shop and sells sweets to other kids.
All of us have heard the word ‘Entrepreneurship’ and it’s like a buzzword. But the reality is, hardly any of us have clear idea about this since we never get taught about this. Another conception is that the entrepreneurship is an inborn quality what is utterly incorrect. Anyone can be an excellent entrepreneur with proper guidance, research and promise.
Therefore, it is significant to inspire children to build their own shop or devise of their own business. At least they can be encouraged to do gardening for their neighbors. To the sum, you must get them thinking about it.