Children's financial literacy, is one of the basic education that parents need to focus on in their growing up....
Every child should learn money management right from a young age, cause the habits developed at a younger age go with them through out life.
It is important for a child to understand how to spend and spend in a way that is in their capacity. Giving them a foundation on money basics will positively impact their life when they grow up and have to manage their family and home.
Specially in the age where money is in the form of cards, how will they understand how much to spend and what is savings It is difficult as they keep watching their parents using Credit/Debit cards for payment towards almost everything, hence it's all the more important to teach them that the spending has to be in equivalency to the earnings. and then there also has to be room for savings.
A lot of parents do complain that their child do not understand the importance of money. Are we supposed to held them responsible for this? They have learnt this from their parents. The money basics of earning, spending and saving can be taught to them from a very young age through various forms; like giving them pocket money and making them accountable for the use of it, also making them understand that a part of it needs to be kept aside for emergencies.
Parents can teach them in a play form like buying/selling of products. They need to know that if they have 10 then what they need to buy has to be within that amount of 10 only. Giving them a piggy bank is an important thing to make them understand on the saving part for the future spending.
Make them understand their spending on the Needs against Wants, they may want many things but they should also learn and understand that everything they want may not be possible to get.
They need to know that there are some basic expenses always in life like paying utility bills, rents, fees and after all the basics are met and considering little saving the additional amount can be then used up for the wants.
Help your child build up these skills right from a young age, they are important and will definitely benefit them when they grow up and start earning.
Many youngsters face this problem when they just start earning, they have not learnt their money basics lessons and hence they are not in a position to manage their finances. They think whatever they earn is only for their own spending on their luxuries. They have not learnt to spend in their capacity and hence many then lend up with overdue Credit card payments. That should not be the case. They need to have an understanding of sharing responsibilities, taking care of the needs, saving for future.
It's a core responsibility of a parent to boost their Child's financial literacy for them to be capable of managing their finances at every phase of their life.
With Love and Angels Blessings 💖💖👼🏻👼🏻🧚♀
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