Money Habits: How to Teach Your Kids About it

Today finance experts and policymakers advocate that good money habits be taught to kids at the root itself, from the classroom. According to a research done, high school students who are trained with personal finance skills by professional instructors end up with vastly improved money habits. The trained kids not only exceeded in money skills from their peers, but also beat older generations who are known to pick up more wisdom through life experiences. Thus, by teaching good money habits to your children at a very tender age you will give your children a solid financial foundation once they become young adults.

Encourage Savings Practices:

Children are most interested in doing things that are playful instead of things that are tossed upon them as constraints. For encouraging your child to acknowledge the importance of savings set up 3 piggy banks labelled “saving”, “Spending” and “Sharing.” After the set up is done educate your child to contribute some amount into each jar whenever possible. When the savings jar gets full it can be deposited into your child’s savings bank account. The amount present in the spending jar can be used for his/her short-term purchases. And, the amount present in the sharing jar becomes your child’s charitable bucket for backing a cause he/she wants to support.

Give Your Child a Monthly Allowance:

Always assigned your child with some domestic chores and make a habit of paying him/her allowance for completing the task starting at age 8. According to finance investment companies in Delhi, India, 61% of parents pay their children an allowance all over the world. This not only develops the spirit of workmanship in your child, but also teaches him to understand the value of money and the labour associated in creating it.

Teach Your Child How to Use Debit & ATM Cards:

When you child becomes a teenager it makes sense that you help him with his money habits by teaching him how to use Debit & ATM Cards. Learning to balance a checkbook and using money management tools like ATM machine, Debit cards will provide him with confidence and make him wiser in his operations.

Discuss the Application of Credit & Borrowing:

Once your child is out of his/her teen years and is ambitious about buying a car, it’s a good time to share with him/her how to build a strong credit history. Ask him to pay off monthly his/her monthly balance right away and to make regular installment payments on time so that his scores good on his credit rating. Explain him/her that nourishing this habit will make his monetary journey a very smooth one!

Finance Investment Companies in Delhi, India understands the importance of establishing good financial habits early in life. Stay tuned for more interesting information to come your way!