Children should be taught the value of money. Here’s how you can motivate your child to save money. Money is important. It gives people the power to make decisions and grab opportunities.
Educating children on its importance should start early in life. Children should be motivated to become regular savers and investors. Here are some ways through which parents can educate children about managing and saving money.
As soon as child starts counting, he should be introduced to money. Parents should play an important role in providing them with information. For instance teach what they can buy with a one rupee coin and tell him how to recognize the money, the symbols in the coin etc. There are 2 ways that children learn - by observation and repetition. Talking to children about your values on money - on how to save it, how to make it grow, and how to spend it - will have a lifelong impact on them.
Children should be made to understand the difference between ‘needs’ and ‘wants’. This will enable them to make good spending decisions right from childhood. Setting goals is also important for learning the value of money. If a parent has the habit of buying everything that his kid asks for, it will only spoil the kid. What you can do at home is set a goal for your kid - give him a task and award him with pocket-money in denominations he can count. Once the money grows he is entitled to buy toys, chocolates, Etc. this would make your kid responsible.
Keeping good records of money is another skill that ought to be taught. It is a good idea to maintain a book for keeping good records of money, saving and spending.