Help Your Kids Become Financially Cautious

All of us have to go through some sort of financial crisis, at some point in our lives and it’s better to be familiarized with these kinds of financial crunches well in advance in your life. The sooner you learn to handle such difficulties, the easier it will be to handle such problems. There is no doubt regarding the fact you would like to offer a financially secured future to your children and to ensure this, it is important to generate awareness among your children. Well, you cannot expect your children to learn all the financial strategies thoroughly as that might seem to be extremely boring to them; As an alternative, parents should come up with some interesting tools using which they can make their kids understand the value of money and the importance of smart saving. Here are some such tools that prove to extremely effective in terms of explaining the value of money and why should they make saving a practice –

• Create a chart – Remember that parents are the first teachers to their children, and therefore you should be cautious enough regarding your spending habits. If your children see that their parents make it a point to save money religiously, they will also grow a habit of the same. To cultivate this habit from the very childhood, you should create a reference chart mentioning the total amount to be saved. For instance, if there is a parameter of 10% of total earnings to be saved, your children would know that if they get rupees 10, they must save 1 rupee out of that.

• Put some money into Piggybank – If your children are too small and it’s not possible to make them understand the importance of saving money, it might not be feasible enough to create a bank account for them. Instead, consider creating a savings account for him at home, and the best way to do this is to create a piggy bank. Make sure your child puts a certain amount of money in the piggy bank regularly, and count it after a certain period of time. This habit would eventually help your kid to realize the value of saving. Again, make sure that you keep certain coins handy so that you can give them change if they ask for it to put in the piggy bank.

• Try to Avoid impulsive shopping – Teach your children regarding being patient and ask them not to indulge in impulsive shopping. They must understand that it is not possible to buy everything that they want, right at that moment. Avoid buying them something right when they demand it. This would give them a scope to reconsider whether they would really need that thing or not. If the kid doesn’t crave that item anymore, it would mean that he just wanted to have that, and doesn’t need it that seriously.

• Take them to the bank – Kids just love to behave like elders and there is no doubt that they would like to visit the bank with you. This would also help them get familiarized with all the formalities.