Has your child ever thrown a temper tantrum at the supermarket, screaming and shouting at you, just because you didn’t buy him a candy bar?
Then, it is the best time for you to start teaching money management skills to your child so that he understands its importance!
Here are some tips to help you coaching your child how to manage money at an early stage:
1- Try to be a good role model:
Children have the habit of following the footsteps of their parents. Therefore, try to be a good role model in order to teach the same to your child.
You should teach your child the value of work and how to become financially responsible.
He should learn that you also want to buy a lot of things for yourself but you cannot afford to do it.
This way, your child will learn how to set a financial goal.
2- Discuss money management with children
Do not think that your child is too young to learn money management skills.
Discuss with him how you earn money and how you plan your expenses.
You should explain your purchasing decisions whenever you’re taking your child with you to shop for daily items. Explain to him/her that you’re buying certain items because they’re on sale.
3- Firmly say ‘no’ to your children
Saying ‘no’ to your child is one of the basic strategies of teaching money management skills to your children. He should learn that he cannot get each and everything he wants. In this way, he’ll learn to prioritize their necessities.
4- Set limits for your young ones
Even if you can afford it, you should stop yourself from buying everything that your child asks for.
Along with this, set limits for your children and teach them how they need to work hard in order to get what they want.
5- Teach your child how to share
Encourage your child to contribute a portion of his/her pocket money to a charity. You can also teach your child to buy occasional treats for your family. Apart from this, you can also encourage your child to make birthday gifts for friends instead of buying them from the market.
6- Allow him to manage small amount
Give your child a small allowance and guide him/her on how he/she should spend it. Do not impose your decision on your child; instead, give him enough freedom to make his own choice. Even if he is not able to manage them properly, he’ll surely learn from their mistakes.
Another way of teaching your child is to take him with you when you go for grocery shopping; allow him to buy things they want from their pocket money.
Teaching your child good money handling skills at an early stage could save him a lot of trouble as he struggles with money issues during his childhood and teenage years.
It will also teaches him that setting goals and working to reach them can be self-satisfactory.
We all wish that money would grow on trees, but unfortunately, it doesn’t! Last but not least, remember that your child mirrors your behavior!