You love your children very much and try to make them happy and comfort all time. You may be a parent who have come from a family where there is no enough money to survive. But now you are earning well and do not like to teach your kids about the difficulties you have experienced. But if you love your children you must teach them how to handle money. Then only thing is that they should understand the value of money and lead a quality life, a balanced one. The following Ten Money Tips you must teach your children.
The exchanging power of money: Money is the means of exchange and one can buy needy items by giving money. Your children must understand the exchanging power of money. They must realize that things they need such as food, medicine and other household items are buying with money. You can accompany your child to the nearest grocery shop and allow him to buy things and pay for it. This will make them happy and confident and they realize the exchanging power of money. Your kid may ask a lot of questions about money and the purchasing power of money etc., and you must answer all of them with patience and love.
Each coin is valuable: This is the second Money Tip you have to teach your children. You must keep all small coins and do not allow to through it away. Give him a piggy bank and tell him to put all coins in the box. After a while allow him to open the box and show him how much he has collected. Teach him the universal truth that “little drops of water make a mighty ocean”. If they understand the value of each small coin at their young age, they will not through it away in their entire life. They will be careful about money in their entire life.
Earn money with effort: This is another lesson you should teach your children. You must teach them that nobody gives out free money to others. It must be earned with effort. Not by theft or cheating. You may be a parent give out a lot of money to your children as pocket money. Then your children will not know the value of money. You must give them money only after doing any household work. Then they will understand that money should be earned by doing some work or taking any effort. It is not a freeware. And they also realize the value of work and glory of work. They can respect all work and all workers.
Make grow the saving habit: You must teach them that money should be kept apart for any future financial needs. The abovementioned piggy bank is helpful for the same. Teach them to save a part of money they are getting or earning. After a while allow them to open the piggy bank and use that money for any of their needs such as buying a cycle, a school bag or a wrist watch etc. Then they will learn to save money and invest money for their future financial needs.
Teach him to spend for the poor and needy: You must teach you kid that there are people who do not have money to meet their basic needs such as food and medicine. Let him to give money to such poor people for their needs. You must show that you are giving for poor and needy and your child also should learn to spend for poor and needy from you. Allow him to give a portion of money for his little charity work.
Teach them to spend money for their needs: Your children must not be miser or lavish. Teach them to spend for their needs and at the same time teach them to spend wisely. Let them to know the difference of need, necessity and luxury and this three things are differ from person to person. For example a car is a luxury for an ordinary man who has no any work outside and it is a necessity for a doctor. If your children can differentiate need, necessity and luxury they won their life and you also won as a responsible parent.
Discourage the borrowing habit: Borrowing money is easy but paying back the debt is not that much easy. So teach your children to avoid unnecessary borrowing. Tell them to borrow money only when it is unavoidable in their life and also teach them to repay the borrowed money in time or early.
Do not allow money to control them: Teach them that they must not be greedy for money. They need money but must learn that money is not all. Do not let money to rule over them. They should not live for money. Money is for them. They should not be slaves of money. They must handle money wisely. They must acquire things only they can afford. If money rules over them, they will be one among the cruel greedy people in the world. So teach them to control and use money wisely and effectively.
Teach them to live as per their income: Everybody must learn to live as per their source of income. Do not overspend. Use credit card wisely and pay all their utility bills and credit card bills in time. If they overspend they will be debtor and they could not pay off it in their life time. So teach your children to live as per their source of income. Do not buy items that their neighbor bought. Help them to make a budget and let them think twice that the item they are going to buy is necessary for them.
Be a role model for your children: Parents are the role model of their children and they always follow your own deeds. So if you wish to teach your children all the above mentioned Money Tips, you must follow it first. Then only you can teach your kids. They will learn from you.
All these money matters must teach your kids to make them successful and responsible individuals by manage their money wisely.