5 Best Tips to Teach your Child Value for Money

5 Best Tips to Teach your Child Value for Money

In this article, you will learn about 5 best tips to teach your child value for money. Five- and Six-year-olds are starting to develop the Cognitive Skills Necessary to understand basic monetary concepts, such as identifying coins, figuring out how to count change, and matching small amounts of money to items they want to buy. In today’s more affluent society, it really is a hard job teaching your child the value of money.

Because the average standard of living is higher than ever before, parents typically have more money to spend on buying their child the latest clothes and toys. Your child likes you to buy her the latest “must have” product and you like to buy her this too because you love her – the combined effect of these factors means that you have an uphill struggle when it comes to developing your child’s financial understanding.

Here are 5 Best Tips to teach your Child Value for Money:

1. Give your Child a Small Allowance.

It should be enough for her to buy minor items, such as trading cards, hair clips, or ice-cream bars. The next time you go shopping, tell your child to bring her money if she thinks she might want to purchase something. What if your child has blown her wad and still begs for ice cream? Tell her she’ll have to wait until the next allowance day. If your child wants something big, such as a new hardcover book or a toy, help her figure out how much she needs to save each week in order to buy it. Regarding this Best Preschool Franchise In India will do a great job.

Make sure she has a clear plastic bank so she can watch her money grow. The majority of experts agree that a child’s allowance should not be tied to household chores. “Children should help out around the house because they are part of the family, not because they are being paid.”

2. Reality and Fiction

Children are easily wooed by TV commercials. Those jingles and the visuals are enough to kick in the idea that they really need a product. Help them see the reality. Is the colour of changing the car is the one he is really after? How long is he going to play with it? Maybe it runs on batteries and will attract more expense?

3. Encouraging Savings

Another strategy to develop your child’s financial sense is through the judicious use of pocket money and any other cash presents she receives. First, encourage her to save a proportion of her weekly pocket money, perhaps a minimum of 25 per cent. She could put this into a “piggy bank” in her bedroom, or into a proper bank account. Although your child may resist this notion initially – because she wants to spend the lot all at once – she’ll get used to the idea eventually. Help her keep track of how much she has saved. Second, encourage her to plan ahead for major purchases. Suppose, for example, your child tells you she wants the latest computer game which is relatively expensive.

She can either save for the item herself over a period of months or you could offer to match whatever amount she puts towards the cost. What matters is that she begins to accept some financial responsibility for her own consumer needs. And she’ll have so much more pleasure from the purchase knowing she has made a serious effort to contribute herself. Teaching your child the value of money at this age sets a good pattern for the future.

4. Give your Child a Piggy Bank

A Great way to start your child’s Financial Education is to give them a piggy bank, allowing them to start saving for themselves. At first, this will probably be small amounts of pocket money, but in time this could teach them how to save money towards something they really want. If they would like to buy a new toy, make them slowly save up over a number of weeks to instil financial discipline from an early age. One Family’s pocket money calculator is a fun, interactive way of getting children to budget, plan ahead and see how savings work.

5. Be a Role Model

Research has established that children follow their parents’ actions, but not so much the parents’ words. Hence, if you are splurging money on unnecessary things, or are in a bad shape when it comes to savings, your child could learn no better. A very important part of promoting money value to your kids is you yourself! You must exhibit yourself as a sensible lady, weighing the pros and cons before spending the money. Your child must be able to look onto you as a person who saves heard-earned money and is not a spendthrift. Keep your monetary tasks organised and never nag about money in front of your kids.

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