 Money is a legal tender and a medium of exchange that we use to buy whatever we want. Though just a piece of paper, it determines social status: the rich and the poor. Apparently, the rich has more, and the poor has less. Money, from its first usage in the sixth century B.C. to this age of equal rights and smartphones, has made the world go round. History has proven that those who know how to handle money well turn out to be rich, while those who indulge in mindless spending end up being poor. Handling money is hard to do, but earning it is even harder, I suppose. As we mature and learn the value of money, we realize that it’s more than just spending and saving. Essentially, allocating it is the hardest part. Teach your kids how to handle money in their early age, so that when it will be their turn to handle their own in the distant future, they’re less likely to experience money problems. Below are tips on how to educate your children on handling money. 1. Educate yourself first. Since you are the parent, and since you are the one who will be teaching your kids on how to handle money, you first have to educate yourself about the ins and outs about money. I bet you don’t want to teach your children anything that will result to bad spending in the future, do you? There’s no need to hide the fact that most of us have money problems, but with the right information and strategy, we can get out of debt and spend better. After getting the right information, convey what you have learned to your kids. 2. Allow them to handle money. It has been said over and over again that experience is the best teacher. Giving your kids their own money teaches them responsibility on how to spend it according to their own discretion. Give them the liberty of deciding how to use the amount you gave them. They may use it to buy their dream latest gadget, or you may be surprised that they might keep it for future use. Just don’t give them the impression that they can ask money anytime, whenever they want; hand it over as an allowance or for compensation for the chores they have accomplished well. This simple act allows them to grasp the real concept of money. 3. Set up a bank account. A bank account seems like a big responsibility, and children think of this twice as adults do. Don’t just set up a bank account under their names; get them involved with the banking experience by taking them with you whenever you visit the bank. Talk to them about the importance of savings as early as possible. Someday, you might get a chance to talk about interest rates, too. 4. Take them out when shopping. Take your kids whenever you go to the supermarket for your weekly necessities or elsewhere that involves exchange of money and goods. Doing so will let your kids be aware of your budget: what items you buy and how you manage to purchase everything in the list with a limited sum of money. Pay with cash as much as possible for them to see how transactions and interactions are made. 5. Talk about debt and everything in between. Perhaps the last thing we want to happen to our family and the future family of our kids is to be drowning in debt. A lot of people end up immersed in debt due to the fact that they have mishandled their finances; usually they spent more than they can pay. Let your kids see the picture of being under so much debt, so they will realize while it’s still early how debts can wreak havoc to people’s lives. 6. Be an epitome. Everything is right in the eyes of children, especially the ones done by their parents. Children will emulate whatever things adults do; their minds are like a sponge, which easily grasps new information and lessons. In that sense, set a good example to your kids about handling money. Their spending habits and lifestyle will most probably be like yours when it’s their time to have a family of their own. There are a lot of lessons to teach our kids over the years, and learning how to handle money is one of the most important. While they’re still young, inculcate to them the value of money and the value of handling it wisely. Related Articles Prevent Sleep Deprivation Among Children The Most Difficult Questions to Answer Smart Starts for your Children
Related Articles -
Handling Money (Kids), Smartphones, Latest Gadgets,
| 
