Teaching Kids About Money Management and Savings

[Phantasm]

Teaching children about the management of their money is important for their financial growth. Begin early by introducing basic ideas such as earning and saving. In a responsible way, lead by setting examples and involving them in money talks. Simple teachings should be given to the young ones, e.g., needs vs. wants and budgeting are essential for every child’s financial education. They can also earn money; make sure they know how it is earned and the value of work in order to learn it well. Assisting them to plan savings for short-term goals is an important role that should not be ignored by any parent or guardian within these ages. Regular savings should be promoted through either piggy banks or saving accounts while explaining what compound interest implies. Such skills and habits will help build a strong foundation of financial literacy and responsibility if instilled early in life.

Instruct youngsters on prudent expenditure, banking basics, delayed gratification, generosity and real-life experiences with money. Teach them how prices compare, how to distinguish between needs and wants, how to avoid impulse buying. Show them about deposits, withdrawals; plus using ATM cards among other bank concepts. Shopping for items you want but do not need involves disciplining yourself so as to save towards acquiring desired things instead of instant gratification. This includes sharing one’s wealth with charitable organizations or individuals who are less fortunate. Real-life decisions will include purchasing groceries for meals at home plus working out a budget for activities. Accordingly frame monetary lessons according to their age group, maturity level as well as interests so that they learn much from them."

 

[SHAHID123]

We need to teach our kids for money management and savings. They are at their early ages and if we don't guide them then they will just spend and spend. Once we provide them right guidelines then they will be able to save money. Here in my country small kids opening accounts facilities present where kids can open bank account without id card.