7EASY MONEY MANAGEMENT TIPS PARENTS NEED TO TEACH THEIR KIDS.

One of the biggest mistakes made by parents is not getting their kids involved in how they
handle family finance or general financial situations. Parents believe they should not bother their
kids on how they run household finances until they become adults. Most times these kids grow
up knowing nothing about how to handle their personal finances, the smart ones quickly learn
personal financial skills or financial skills in general.
The worst thing is that high schools teach the kids nothing about money management and these
kids go into college without knowing a thing about how to manage their money. Usually the first
year in college for such kids will be a bit rough in terms of managing their money. Luckily for
them there are now business classes in college but some kids still don’t take this class because
they don’t seem to know the importance of knowing how to handle finances.
That is why it is so important for parents to let them know what money management is and also
teach them the basics too. Parents should let their kids understand that money management
skill is a lifelong skill and one of the most important skills to learn in life and also encourage
them to take business class in college. Quickly, let’s go into the things kids need to know about money management before they are 18.

1. Talk about money regularly:

Regular conversations about money make it easier to
teach kids about money management skills, like that they will get used to hearing it. It
doesn’t really have to be a serious conversation about money, it could be just showing
them your credit or debit card, telling them the difference between credit and debit cards.
You can decide to give them an assignment to write an essay about money, like what
they would do if they’re given a certain amount of money. Make sure to take note of
everything they put down on the piece of paper.
From taking note on what they’ve written, you will know exactly how to start teaching them and
areas to touch while talking to them about money.

2. Tell them the difference between needs and wants:

this is a very important aspect
to touch, because most kids don’t know the difference between what they need and what
they want. Explain to them what the basic needs of humans are and let them know it is
important to first get what they need before what they want. It is important to let them
know that food, clothing and shelter are essential needs while toys, princess crown or a
superhero outfit are all wants and they can live without them.
To make it easier, you can decide to get pictures of needs and wants, with practical examples
like that, they will understand better.

3. Start teaching them how to budget:

This when you get them involved on how you
manage the household and your personal finances. Explain to them the meaning of
budgeting and why it is so important in money management. You can even let them see
how you create the household budget for groceries shopping. When you are going
grocery shopping, take the kid along and show them that it is good to stick to a budget
and let them know why it is important to.
Teaching them this, you’re actually preparing them for the future and giving them a lifelong skill.
Also, let them know that it is important to budget base on what they have, and they should try as
much as possible not exceed their budget.

4. Teach them how to save:

it is very important to make it an habit for kids to start saving
at an early stage. Explain to them why they should save and teach them ways to save. It
is important when you encourage them to keep some money instead of spending all of it.
You can even buy a piggy bank for them, this will make it easy for them to save. To make it
more simple, you can tell them to save for a particular thing they really want, or for Christmas,
even for holidays. This will make them committed to it and also give them a sense of
responsibility.

5. Get them involved in your business:

do you work in an office? Or do you own your
business or a restaurant? Whatever you do to bring food to the table, let your kids get
involved in it. If you run your own business, every once in a while take them to your
store, show them around and even try to explain to them how you manage your
business.
This way, you are opening the child’s mind to the world of entrepreneurship.

6. Pay them for unusual tasks:

imagine getting paid for cleaning the house, folding
clothes, arranging bed, washing dishes etc. Although these things are things they should
learn to do normally but paying them will give them a sense making their own money and
they will get eager to do these chores.
Do you own a restaurant or a fashion store? If yes, allow them work for you on holidays and pay
them salary. This way, you are training their minds on earning, and as they’re earning they are
also saving. Before you know it, they will learn how to become independent because having
your money kind of gives you a sense of independence.

7. Show them the different kinds and values of money:

you can start by showing them coins, then a paper note, checks, etc. Show them how and when to use credit and
debit cards to make purchases.
You can even go as far as giving them tests to identify each type of money and its value.

BOTTOMLINE:
Teaching your kids about money management at an early stage will help them in a huge way.
And kids seem to assimilate things faster at a younger age, because the level of distraction is
low. However, teaching them these money management skills will prepare them for the future
and will also become a part of them, making it very easy for them to manage their own money
and make wise decisions when it comes to money.