Money is not everything in life but money is the base of good quality of life. If you are not interested in spending money according to your pocket or budget, it can upset your whole family life. It is very necessary to teach your child about the importance of money from the very beginning.
But don’t make him penny-wise and pound-foolish. Teach him to use his pocket money according to his needs. It is not difficult to teach your child about budget or money – in fact it’s much easier than teaching him counting or alphabet. The chief rationale behind this is that we can teach him about money practically.
Parent’s right attitude is very helpful in this regard. Always guide your child about the importance of savings. If he persists to purchase something always ask How can we afford it? It does not mean that you should snub his desires. Buy the same thing for him but let him think about the ways to save money for his toys, cartoon books, video games and clothes. Don’t give him every thing easily even though you have money in abundance.
You can purchase a Piggy bank for your child. It will help him value the growth of money in a concrete way. You can further deposit his saved money in some bank account. You should also guide your child about the benefit of a savings account. It would help build confidence in him.
Give your child pocket money in a reasonable way and don’t spoil him by giving him too much money. It often happens that many of us give money to our children to show our love towards them. But this is not the correct way. Teach him to spend money wisely and you can do this by laying a restraint on his pocket money.
There are money games in the market available at cheap rates. With the money game your child will learn that if he has money at hand, he can stay everywhere on rent without any problem. He can also buy his own place if he saves much money. Money games also teach him negotiating skills that are very necessary in today’s time.
Teach your child about the difference between needs and desires. To make him conscious that earning money is not as easy as spending it, you must assign some task to him and also reward his act with some monetary benefit. Give freedom to your child to spend money that he has acquired by his own in this way. Use trial and error method. Everybody learns by doing mistakes. Our own experiences are our best teacher. This would happen with your child also.
For financial security of your child it is your duty to teach him the danger of borrowing too. You should guide him about creating a balance between spending and earning. But don’t lay too much stress on money as it can make your child exceedingly calculative.