To organize the budget and invest in some family-wide dream, such as getting into a new car or taking a vacation, children’s participation is essential. The first step in motivating children to participate is to teach them the importance of saving. Even simple practices, such as cutting ice cream after school and giving allowance, make a difference and help little ones understand the importance of financial education.
Here’s how to teach your kids how to organize personal finances:
Set an allowance
Depending on the age of the children, an important step in teaching them how to manage money is by giving them a symbolic allowance. It is important to explain that money should not be spent all at once because if it runs out, the child will have to wait until next month to buy anything else.
Show that nothing can be achieved without effort.
Explain the difference between tasks that are a child’s obligation, such as making a bed and storing toys, and those that are extra activities, such as helping to store groceries and mop up. to take the option of the furniture. Every time the little ones do an extra task they can be rewarded for it. This practice will make it clear to them that it is worth the effort, as they will receive it.
Reinforce the importance of saving
Teaching little ones to save early helps to create healthy financial habits. Talk to the children and together set a savings goal so that you define how the money will be used. Start with small values and gradually increase as your child gets used to the practice. One way to stimulate savings is by combining that for every $ 100 you save you will complete with another $ 50, for example.
Teach how to avoid unnecessary spending
Superfluous spending can compromise the budget. Therefore, the sooner children understand how they can avoid such expenses, the better. A good way to introduce the subject is to say that the school lunch, for example, does not have to be bought in the cafeteria. When the little one takes food from home, in addition to eating better, he saves the amount he would spend in the cafeteria and can use the money for other things more important to him, such as a weekend movie theater.
Give the example
There is no point in educating children financially if parents themselves are not the example. Show your children how you keep spending under control and avoid impulse purchases in front of them. Teaching the importance of personal finance to children is essential practice to ensure they grow up. Knowing the importance of money and that they should never spend more than they earn. The sooner the little ones understand that it is essential to consciously consume and value what they have, the better off they will be in managing their own finances in the future.
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