How to teach your children on handling finances is a responsibility of every parent.
We often hear this wise advice, “Good habits start from young”. This is also true when it comes to habits of money.
Are you equipping your child with habits and environment that can help him handle money now? So that good habits are formed to last him a lifetime.
A few questions to ponder.
1. Does your child have a bank account?
- Open a joint bank account with your child.
- Allow the child to learn how to operate the bank account.
- Have your child learn how to deposit or withdraw money.
- Teach your child banking concepts that most adults struggle at.
2. Do you monitor your child’s allowance?
- Allowance is a vital tool that you can use to form good lifelong spending habits in your child.
- How you guide him into using this cash determines whether he turns out to be a decisive, responsible money manager.
3. Has your child bought anything from his own savings?
- Set short-term goals for your child.
- If he saves enough money, he could buy the toy or gadget he has been wanting.
- This move will be more superior than to just buy items for your child.
- Items acquired via some hard work by your child will naturally be more treasured by your child too.
4. What concerns do you have regarding your child’s spending habits? As parents, we have to be watchful of our child’s spending habits.
4 common areas which are most worrying for parents are
- Nonchalant attitude towards money
- Wasteful expenses
- Overshooting the budget
- Spending on stuff rather than the necessities