This Summer Vacation Make Your Child Learn The Benefits Of Budgeting From An Early Age

Posted: June 8, 2017

All parents see a dream of their dear little ones being successful in life; yet, for nurturing a successful future, simple and intelligent steps need to be taken now, including – learning the benefits of budgeting. 

The primary values of life are as important for children as receiving their primary education. Along with that, it is important for parents to make their little ones understand the economic value in life on an early basis. This would make it much easier for them to value money when they are closer to entering the real world for earning their reputation along with money. For the coming future, it is important to engage kids and teenagers to know and have control over how their expenditure by setting accurate saving goals with help of their parents.

Teaching children about money could help them establish a vibrant sense of monetary habits for the future. Having your kids develop the initial financial knowledge, helps them face and be ready for the financial matters of the future and to know the role and benefits of budgeting.

Teaching the kids about money, small savings, thoughtful spending and help them keeping disciplined financial habits, will give the children a vital sense of individualism. The knowledge of money and savings provides them with the confidence to deal and understand financial problems, if any arise at home. Saving money is a diligent task, but it is of utmost importance for children and teenagers to take it as an essential part of their active life. Some kids may be rude or stubborn to deal with when it comes to making them realize about money. They’re lost in the thoughts of when they want to buy their particular toy or video games. And the hardest task for a parent is explaining to their child the difference between needs and wants in terms of priorities.

For little kids, it’s obvious that the first eye-catching attraction is their last verdict, and you fail to make them understand the benefits of budgeting, ultimately completing their demands. The work for parents just doesn’t end in any way! They have to teach their kids on how to spend their pocket money or allowance in a meaningful sense. It can’t be easily finished by just handing over the kids a monthly allowance and let him/her spend it on anything they want.

Often, in the beginning, some parents hesitate before making their children discuss the topic of money and how to become financially savvy, as some expect the schools to do their job in making children study about managing their personal finances; but the school can only teach them about economics for the future, not how to handle their finances at such a young age. In making or trying to make your kids aware of the savings or allowance spent by them, you have to make them stick to the fundamentals: they are solely in charge of the money being provided to them. Let them be involved as a participant and review your family budget to them. As an important part make them believe that they are the smart financial advisors themselves by giving them certain tips on how to pay or buy smartly – according to their needs not wants. Stick to them, the funda: the more carelessly you spend now to fulfill your wants, you will cut back money for your coming future needs, and at that time they will have less money to spend on their needs.

How to teach the benefits of budgeting 101

  1. Parents are the good role models for their children. If parents are spending carefully according to their needs, the same will be understood by her children and would simply work on both their budgets and its further planning.
  1. The major duty of parents starts when they make their children understand the importance of work, and that by working, they get paid. Make your child understand the accountability relationship of money to work.
  1. Take your kids to the banks or the ATMs to let them learn how you take out money from the savings account and explain it to them while doing it.
  1. Allow your little ones to help you in the shopping or while buying something valuable and let them handle the budget you give to them. Review together the things wanted and the budget limit available.
  1. The child’s participation in the budget planning of the family would help them know where to lessen on the expenses like switching off lights or their computers when not in use to save electricity.
  1. Till your child’s teenage years, start giving them small amount of Rs. 10, or Rs. 20 to keep with them as their own as soon they understand that money can buy things.
  1. Encourage them to save their money which is provided to them in piggy banks or glass jars (nowadays the option of children accounts are also available in some banks to help to manage their money safely.)
  1. For little kids, it is a good idea if parents play with them the business or monopoly games which itself generate a seed into kids to arrange and prioritize their money through playing games.
  1. Parents can also make kids interact through websites which help in savings and making monthly budget plans like MoneySmart’s budget planner or TrackMySpend apps.
  1. Make budget plans together with short-long terms goals and saving plans (for older kids) and don’t forget to establish limits – if you are giving your children credit cards, teach them where to use and when to bring in use if necessary.
  1. Deciding budget plans helps your kids prioritize their wants and needs via making appropriate use of money, whether in cash or credit cards.
  1. Another good option is to encourage your children to take up a part-time job at the right time to make them understand the real value of how money is earned, which helps them to save money for the future.

Budgeting well plays an essential role in our lives as well as that of our children, so it’s better to plan today and keep control over the money which the kids handle as their personal finances.

Top image via Pixabay

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An MBA Post Graduate, An avid researcher, A curious knowledge seeker and founder of Artizone.

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