It’s a good idea to start teaching children financial responsibility early, and this will pay off in the long run and content contributor Mojisola Yewande is sharing ways via which this can be achieved.
Research suggests that children as young as three years old can understand some financial concepts like saving and spending.
Since as parents we are the number 1 influence on our children, then it is up to us to raise children who are mindful of the way they spend, save and give.
Here are a few tips to teaching financial responsibility.
1. Give your child a weekly allowance
You could tie the allowance to chores, or you can just give it freely at the end of each week. If you decide to give an allowance, be sure not to give your child any additional money. It is also a good idea to make your child save a part of his compensation; you can get a piggy bank for this purpose.
2. Let your child understand that money doesn’t grow on trees; instead, you work to make money.
3. Teach your children to save for what they want
You need to teach your child that if he wants something he might have to save to get it. I know we all want to give our kids the best so we may not necessarily buy this idea but it will be good in the long run. If you feel the thing he wants is too expensive and it will take a long time to save up for, you can help him reach the goal in a suitable time frame.
4. Teach your child to make choices about spending money
You need to make them understand that once they spend money, it is gone and cannot be paid again, so they have to make the right choice of what to spend on
5. Teach your child to keep track of how she spends her money; give her a notebook to write how her money is spent
6. Teach your kids to give to persons in need, so they know money can also be used to help people and not only for buying things