Money isn’t everything, but everything needs money! People spend their early years studying and securing a degree so that they can build a career with a secure financial soundness.
Students are introduced to the concept of money as early as kindergarten. They learn what currency are, the different currencies of the world, and how to count money. Children are even encouraged to apply their knowledge practically by interacting with the billing desk person at a grocery store and asking for the correct amount in change.
Along with learning the ability to use money, children must be taught lessons that highlight managing money wisely. Introducing the concept of savings at an early age is going to help in the long run and make the individual more responsible. Here are a few techniques that you can adopt to give your kid a head start on money matters and investment.
#1 Piggy Bank
This is an old-time classic that never fails anyone. Inculcate a habit by explaining to your child that adding extra pocket money to a piggy bank is a good idea, as these savings will grow over time and come in handy when they are needed.
#2 Be a Role Model
Though it’s a bit too much to explain to a 6-year-old what mutual funds and debentures are, the minimal they need to know is about a bank and a savings account. Every time you go to deposit a cheque at the bank, talk to your child about why money is being given to the bank. Explain to them that a bank is an institution which keeps your money safe and provides incentives for savings.
#3 Spending On Necessities
Though online shopping has made life easier, as everything is available at the click of a button, it has many cons. Shoppers spend more than they need to on unnecessary items, just because they get lured by the attractive display of them on a shopping website. Make a point to teach your kids that if they spend unnecessary money on the latest game, they might not have enough left to purchase a pair of shoes which they really need. Spending money on what’s important, and not on random desires, is a lesson that is the need of the hour.
#4 Earn Money
No matter how young kids are, make them do some tasks around the house and let them earn their own money. They need to understand the value of money, so that they don’t rely on asking for it, but work hard to earn it. Allocate simple chores like gardening plants or cleaning the cupboard, and incentivize the task.
#5 The Importance of Giving
Just as you’ve taught the value of saving and earning, students must understand the concept of charity and giving. Going beyond friends & family, and teaching kids that there is a world out there waiting to get some help, can open the child’s consciousness at an early age. Go together to charity events, join an NGO, visit local old-aged homes, and let your kids experience the joy on a stranger’s face, when you give just a bit of money & time.
#6 Budgeting Lessons
Every household allocates a monthly budget for home expenses and alters expenditure based on this sum. Let children be involved in the house budgeting process. Explain and talk about the different categories under which you have allocated expenses; groceries, electricity charges, rentals, and other miscellaneous overheads. If a 5-year-old can learn coding, why not teach him a bit of budgeting!
#7 Savings for Life Events
When you set aside a considerable amount of your savings for future events like your child’s education abroad or their marriage, make them aware of the same, so that they can follow the practice when they become earning adults and have families. Talk to them about the concept of loans and tell them why it’s not a great idea to borrow money which you can’t repay. Let them save a bit for their own education too
So, now that you are aware of the points that need to be discussed for securing the child’s financial future, take help of the Mathseeds app.
Mathseeds is an engaging online math platform that supports hybrid learning at home and within the classrooms. Mathseeds has earned the trust of students all over the world, including those in Dubai and other GCC regions. By adopting Mathseeds, students learn important problem-solving concepts that are applicable in real life scenarios. Simply download the Mathseeds app on your phone or iPad and get working with the fun activities, number challenges, and earn rewards for participating.