Teach Your Child How to Manage Money

Feb 2017
Teach Your Child How to Manage Money

The National Budget is here. While everyone has an opinion on whether it is good for them or not, use this buzz to teach your child about how to manage money.

Giving your child a head start on money matters helps them understand the value of material things, ‘why' mummy or daddy work so hard and goes a long way in avoiding disappointments

As a simple exercise - give your child 100 rupees and ask him to buy what he wants. After the purchase, ask your child why he bought that item. Respect his decision. Is it one chocolate or is it a bag of small chocolates for family and friends?  Ask him would buy the same thing the next time or something else.

Show your child the family budget and how things are allocated for school fees, monthly groceries, holidays etc.

Take your child to the market regularly. Ask your child to help you find and read the unit price numbers at the grocery store to find the best bargains. Demonstrate how you can save money.

A bank can be a bewildering place for a small child. Take them along and explain how you keep money in a savings account. Explain to them that the glorious ATM card is not a magic money card, but just a tool to withdraw saved money.

Encourage your child to save money in a piggy bank. Allow them to make a few wrong decisions but encourage them to shop independently with their pocket money.

At malls, do not give in to their tantrums and sulky behavior. Ask your child to plan in advance at home, what he would like to buy or eat and stick to the plan.

Children learn from watching their parents, set an example for your child while dealing with money. With some dedicated effort, a child will understand the value of money and the need to budget and plan. Introducing this concept early on will help them grow into balanced individuals with a good emotional quotient.

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Author
Vidya JS
Vidya is a full-time mom of two little kids. In previous avatars, she worked in the Public Relations industry in Bangalore and Chennai for 10 years. She is a trained classical dancer and has a degree in communication and literature. She loves art and culture and is always looking for ways to give the cartoons a break and introduce a bit of culture to children in fun ways. When not running behind the kids, she fantasizes about hour long foot massages, having uninterrupted cups of tea and traveling light.

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