Wise men say “Ignorance is bliss” but that does not stand true in the case of teaching money matters to kids.
The only way to empower the coming generation is to teach them about money matters
What do you remember learning about money and saving which you were young? Just a stern “Money does not grow on trees!” and do you know how costly this is? That was,unfortunately, the apex of our financial education. Knowing how to manage money and savings is the foundation of financial stability in your later years. Because of our zero interaction with our parents about money matters and finance, we learn to manage them the hard way. Interestingly, even after understanding the importance of financial literacy, no school is teaching anything about saving. Since the future of the next generation is in our hands. These are some of the simple ways you can teach your child about saving money.
Start by telling them to maintain a piggy bank, it can teach you about saving like no one else
According to experts, piggy banks are a wonderful way of teaching children the importance of saving money in the easiest way possible. Tell your children to fill the piggy bank up with coins and money, you get as an allowance. Teach them that saving is the only way they can buy their favourite toy or favourite snack. Illustrating the piggy bank as the only way their money can grow if they save.
After their piggy bank is full and they are still keen on the idea of saving more, open a bank account for them
Opening a bank account is an excellent way of teaching them how to manage their money. Take them to the bank with you and initiate them through the process of banking. Make them count how much money they have that would be deposited. This would prove beneficial and make them understand banking and money.
Create opportunities so that they could earn their allowances
Just helping them save money would not be complete without letting them learn, how to earn it? Remember when we all started saving and started making good financial decisions? It was after we started earning them. So, make them value money by working to earn it. Create jobs such as performing household chores, helping with grocery shopping, tidying your room. Not only that sometimes children even learn the fine art of bargaining about their “salary” and the additional benefits.
So, is your child financially literate?