We live in an age where children, even 7 to 8 years old, have become millionaires by earning through different applications and platforms such as YouTube or Tik Tok. Every other kid is making a YouTube channel and progressing in the field by practicing relevant tasks of video editing or learning how to download YouTube videos and ensuring that video quality is not compromised. Kids, however, have multiple options available to take as their careers. Being able to gain popularity within months through the internet has made children grow faster and develop a mindset that makes them think ahead of their age.
Therefore, it would be better for them if you will train your kids to manage their money rather than letting them figure out on their own and end up wasting it. This isn’t a difficult task at all, neither for you nor for your kids, here how you can do it conveniently:
Teaching Them the Basics:
Kids learn faster when we teach them something practical. Teach them the basics by giving them money in hand. Either you are teaching them to put coins in a piggy bank or the paper currency in allocated envelopes, make sure they are given autonomy, and they can handle the amount themselves. This will inculcate in them a sense of responsibility. Starting the basics at a small level will make them better understand how banks work and later on how to spend less even if they have a credit or debit card.
Teaching Them Saving and Sharing:
Saving and sharing are something that needs to be taught since the beginning. Kids should not only know that how and where they should spend, rather it has to be their habit to allocate two portions of their pocket money, i.e. one should be saved, and the other has to be given in charity. These two concepts are what forms a stable basis of not just societies but also our lives at individual levels.
Doing Comparison Shopping:
Everyone can spend money; the real trick is to know how to spend less and buy more. Suppose your kid wants to buy something from their money, teach them how to do comparison shopping. Firstly, look up for the sales offer on the required items. If there aren’t any, teach them to compare the prices of the same item on different brands, that can be done either by visiting the outlets or using the digital storefronts. The goal has to be to spend more wisely rather than spending on overpriced or unnecessary items.
Encouraging to Earn More:
Everyone wants to be financially stable, and that only comes with motivation to earn more and to save more. Likewise, encourage your kids to earn more money, and that can be done by asking them to do chores such cleaning the backyards, doing the dishes, babysitting, pet sitting, taking the dog for a walk, collecting recyclable materials and taking them to recycle plant, or they can even tutor the students who are struggling with their academics. There are endless opportunities that can help your kids to stay motivated and learn to earn for themselves. Aiming for better opportunities will become their habit.
Making the Budget:
Budgeting is not everyone’s cup of tea. It is a skill that is learned and practised over time. Many people, particularly shopaholics, fail to spend their money wisely and end up with heavy debts. Therefore, teach your kids to pay for the bills and necessary items first rather than making a shopping list. It is better for them to it all written, this will help learn more effectively, and they will be able to hold themselves accountable for overspending.
Teaching in Age-Appropriate Way:
Kids should be taught in a way they can better understand the things. If your kid is in kindergartens or aged from 8 to 12 years, then you can make them learn the basics of credits through games such as marshmallow test or by using the apps such as Bankaroo, which is a virtual bank for the kids.
Final Thoughts:
Financial management is a skill that can save lives of money if taught during the earlier stages of life. Being able to earn and using it wisely is what everyone aims to do. You will do your kids a favor if you will teach them how to be financially stable individuals.