It is never too early to help kids understand about money. The modern day parents want to provide everything to their kids. But getting everything without any efforts will not just make them lazy, but also result in denial of acknowledging self capabilities.
They would feel dependent on others’ resulting into low self confidence & co-dependency when they will grow up.
Thus whether it is understanding the cost of the new toy they want or the value of saving money; the kids must be exposed to money matters from a very young age. We as parents must help them to inculcate healthy habits and must make them MONEY SMART.
In order to make the child learn and understand savings and investments, it’s not necessary to make the use of currencies only. One can develop healthy habits by practicing following parenting styles.
- When you and your child are waiting in a que discuss how important it is to learn to wait for what he/she wants.
- Create three jars – each labeled as “saving”, “spending” and “sharing or investing”. Every time child receives sweets ask the child to divide them among the jars.
- Have your child set a goal; such as to buy a toy. Then let him collect the rewards to earn and save to afford that toy.
- Give them the opportunity to earn. Tell them that they will be paid for some tasks.
- Share your own experiences, learnings and ways of managing money.
So let’s do smart parenting.