How to Inculcate Financial Discipline in Kids- A Complete Guide
Your children are the ones who are going to take care of your future needs. When they do not realize the importance of money at a young age, they tend to spend lavishly and invite troubles. Also, they will grow up irresponsible and end up spending every penny saved by you. Hence it is very important to make them learn financial discipline at a very young age.
Money management: To start with give them small amounts every now and then and ask them to buy few things for the home like milk, groceries etc. Only when children handle the money they realize the value of money. This is the first and foremost step to make them financially responsible. They will learn their mistakes and try to be smarter when it comes to money matters.
Set an example: You yourself have to be very responsible when it comes to financing. Children observe and learn from elders. When they see you bargain, think, discuss money etc. they will automatically become more disciplined in spending. Only when they see you switching off unnecessary fans and lights, they tend to be thrift towards power bills.
Educate them latest investment: Educate kids about the latest investment options like crypto, bitcoin code etc. This will invoke their interest in saving and accumulating wealth. There are lots of online information about investments. Ask them to read this review.
Financial transparency: Ensure you maintain financial transparency to an allowable extent. Do not hide financial strains from kids. They should at least have minimal knowledge about how elders are working hard to tide over the situation. This will make them think twice before spending.
Make them work: Encourage them to take part-time work or small jobs during their vacation. This makes them learn how difficult it is to earn money.
Time value: Realizing the value of time will help in realizing money’s value also. Teach them time management techniques. Ask them to track idle time they waste every day.
Game of alternatives: Play the game of finding out the cheapest sources/alternatives with them. Only when a person has more knowledge on market information, they can be wiser towards handling money. Whenever you buy stuff for the home take them along with you when you go out for enquiring in a few shops. Teach them how to decide the cheap and best purchases. Train them to locate the cheapest source for buying materials.