Category: Finance

Here’s How to Teach Your Children the Basic of Their Finance Work

By Michelle Johnson
28 Aug, 2016

Finance and children, it is too hard for anyone to survive with right. Well, here’s the first and the most productive stage to make them effective towards their finances provided.

  • Give them a fun tool of questionnaire

It’s been like the most productive source from where to go for thesurvey. And this can be mostly implied to your children when it comes to finance.

Some of the most stupid but funny questions which can make them go funny and they’d be like “What? What kind of the question is that?” can literally make them go so thoughtful. It’s all about brains. Children like fun things to be done. As said by Chris Bailey “Productivity isn’t about how busy or efficient you are—it’s about how much you accomplish.”

So, there’s when it’s done. You give them sometime and play with them and give them some fun jobs.  Trust me; they will solve if you are totally engaged with them too.

What all questionnaires you can prepare?

  1. How much do your accessories charge you?
  2. Do you know where the money comes from?
  3. Why do you think they are important for you?
  4. How do you think they are beneficial to you?
  5. Do you think the things you love right now will guarantee that they will be with you for the lifetime?

Those are all silly questions for sure, but they literally help your kid’s brain work from the root. Isn’t the tree based strongly from the root is sustainable long enough? This is all about playing with their minds and circulating a bit of your cleverness to treat them like they want to be taught.

Not only that, they will always remember these kinds of things later in life for their budgeting.

  • Include them together with you while you are planning your budget

My parents have never even thought of telling me how to go for savings and how to plan really for savings. I don’t have aclear idea about what goes on when it comes to finances. So, the best way to really let your kids learn about finances and their budgets is to include them with you and teach the practicality of life and how they need to adjust and pop out the mysteries of finances in life.

  • Allow them to spend and manage on their own

When this comes to being, many parents hold their children from being paid for their pocket money. Teaching budgeting is your responsibility. You know it why and where they can use the money. You know your kids well. But tying their hands with no money is a bad option, I suppose. That way, they will never even learn how to adjust when they lack money and so when they get it later, they become a bad manager. Allowing them to spend with limited money can at least teach them where their money can be spent for their basic needs.

However, be strict of not spoiling them providing ahuge amount of money. You have to get a hold of that.

  • The Jar method

When I say, allow them to be with you while you are making budgets, do not think that they get it all. It’s way too complicated for them to understand for sure. But teach them the way to direct the flow of money and that they have the full power on how the money flows and where.

As I said, Children like fun things. So, here’s game. There’s something called the jar method. Here’s how it has to be done:

Spending, Sharing, saving, investing.

The four jars are about how much amount you want to spend for yourself (Spending), how much amount is okay for you to spend for some cause (Sharing), how much you need later (Saving), and how much amount you require to invest in your personal things now (Investing) which includes savings.

Some lessons about how to teach your children the basic of their finance can be done by search in google and books. But the experiences prove much better than them because this is what they actually need to be practical and what actually suits the best for your children. Not everyone has to follow the same.

  • Teach and Follow what they want

Basically, parents are too much into what they actually want from their kids. That doesn’t work that way. You have to follow and guide them all together to make them financially productive and a good manager. They do not want what you want them to have. They want their things, their own things which means much more to them than what you want them to have. Encourage them but teach them all along.

These are some of the things you need to make them learn about how to save and invest:

  1. No that necessary that every time you have to teach them about how to maintain things only now but you have to make them understand that savings can help them out in future. What you save now is what you can have later.
  2. Teach them patience. Make them understand that not everything that they want is affordable at that very moment. Teach them to wait for the time till they are capable of buying the things that they want.
  3. Frustration of not having money is something everyone has to go through once. Teach them to work hard and earn and then manage. Till then, let them breathe and discuss things with you.
  4. Teach them how to plan by giving examples of your own experiences.
  5. Prioritizing what they want is their choice. So, that’s how accordingly teach them that not everything is in the world is in their hands to buy.
  6. Teach them to keep a track on the money flow. Help them not to be irresponsible about how much they are spending where and how it’s going to affect their finances in future.

It’s not that tough, you know? You do not have to complain when they grow up and go for some things with your money. Teaching them to work hard and to earn and save will not only help them but you too because they do not have to be depending on you all of the time. At least, they will learn to plan and figure out things properly and because you gave them the root of being responsible later, they surely will be only if you give sometime to them to teach them about finances.

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