Children’s day is here and yet again your kids will have celebrations at school. So it’s mostly going to be a routine day like any other day. But this year do something out of the routine if you haven’t been doing it already. Teach your kids about money and make them independent. Here are a few money lessons that you can teach your kids starting today.
Lesson 1: Make them independent
Give your kids monthly allowance and ask them to keep track of their spending. Tell them they are free to spend the money but they have to make a note of every rupee spent. After every month sit with your child and analyze their expenses. Tell them which expenses can be avoided and appreciate if they have spent the money wisely. On practicing this on a monthly basis they will know what are they spending the money on and will learn how to spend wisely. This will also help them to spend within the budget.
Lesson 2: They can’t get everything they want
Ask your child to choose between the things he/she wants the most. Tell them they can’t buy their favorite toy and also a pair of shoes. They have to decide which is more important. It’s like an opportunity cost. If you want one then you have to lose out on the other. This will help them improve their decision-making skills.
Lesson 3: Save
Give them a piggy bank and ask them to save a certain amount of their monthly allowance in it. They can start with one rupee daily and later increase it. One way to get your child to save is to save yourself. Keep a jar and add money to the jar when your child is seeing. Make sure you mention it to them that you are saving the money. This will inculcate the habit of saving and they will feel saving is more of a customary activity in one’s life.
Lesson 4: Earn your own money
Give chances to your kid to earn money. Give them household chores and offer them a little amount of money for the work done. This will make them learn that money needs to be earned and it doesn’t come for free.
Lesson 5: Prepare a wish list
Ask them to prepare a wish list and help them prioritize their wishes. Their wishes can be something small as a chocolate to something big like going to an adventure park. Once they prioritize their wishes ask them to save to fulfill their wishes. Simply put it is to have goals and investing or saving towards their goal. Once the amount saved is enough to fulfill the wish take them to the store and ask them to pay for themselves. This will give them the immense satisfaction of achieving something. They will feel encouraged to save more to fulfill their goals. They will also learn that not all wishes can be fulfilled at once and one needs to prioritize their wishes.
Lesson 6: Borrowing
Your child needs something but doesn’t have enough to pay for it. Tell them that you can give them an advance from their allowance or they can borrow the amount to fulfill their wish. But make sure you take back the principal plus interest from them. This will they will learn borrowing money comes with a charge.
Lesson 7: Sharing is caring
Teach them sharing their money. Make them donate a part of their savings to orphanages. They can even save to buy a gift for their siblings or friends. This way they will learn the joys of sharing.
Lesson 8: Money is not everything
This is the most important financial lesson you have to give your child. Teach them money is not everything, it is just a tool to fulfill wishes. Show them they have a lot to care about apart from saving money and prospering in life. Show them how important family and friends are and they can make you happy and money just creates the illusion of being happy. Money is just a small part of life and life doesn’t revolve around it.
“The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires.” – William Arthur Ward
So this children’s day inspire your kids by inculcating these financial lessons and make them more responsible and caring.
Upwardly wishes your kids a very Happy Children’s Day!