Parents have a sacred duty to provide their children with their temporal needs that includes the basics like shelter, food, and clothing, and also the luxuries like toys. The duty of a parent does not end at providing the immediate needs of a child and it extends to ensuring that a child can meet his or her needs in the future as well. Teaching them the important skill of money management is a step towards ensuring that they grow up to be financially independent adults.
In the modern age of advertising, the marketers heavily influence the minds of the young ones with all their temptation of toys, junk food, and more. For parents, it might feel like that they are better off without giving any money to their kids. But, that is not the right way forward as until you give them money, you cannot teach them the importance of money and the ways of saving the bucks.
We, at the K.R. Mangalam School, believe that it is better to teach the kids the important lesson of money management when they are young rather than reprimanding them when they are older. We have hence included below some of the key pointers that you need to keep in mind when it comes to educating children about money management.
Teaching by Example
The experts suggest that since children learn most of their skills by observing their parents, it is imperative that the parents encourage the children by bringing about changes in their own habits. If the child sees you spending beyond your limits, he or she will feel that it is okay to overstep the budget. Teach them to save towards a goal rather than giving them instant rewards. For instance, let them save money for the video game rather than buying them the game the moment they do something good.
Discussing Your Financial Choices
Tell your children about how you earn money and how you save the bucks. Take them to the grocery shopping with you and explain the purchasing decisions that you take. When you pick up mangoes instead of strawberries from the aisle, you can let them know about the difference in prices and how you can save money on them. Teach them about discounts when you avail any. This will teach them smart money handling skills and they will actually learn to save in this way themselves.
Set Limits to Indulgence
Refrain from giving in to every whim and fancy of your child even if you have the financial ability to do so. Instead of indulging to every wish of your child, teach them about appreciating the importance of working hard, striving hard through obstacles, and achieving the goal. This does not mean that you stop indulging in anything that your child wants, but it is just that instant gratification is best avoided.
Giving Monthly Allowances
Let them learn to manage their own money by giving them a monthly allowance. You can tie the allowances to the completion of certain chores. Give them certain basic guidelines on how they can spend and save the money. You can give them the freedom to make their own decisions regarding the money they earn as allowance but keep a close eye on their actions. For example, let your child bring the money with him or her when he or she comes to the grocery store with you. Let your children decide if they want to spend their money on the candy bar but tell them that they will not get an allowance again that month.
Teaching Comparison Shopping
Comparison shopping is something that we adults use to ensure that a few bucks are saved on the purchases. So, there is no reason why you will not teach the same to your child. Show them how by comparing between two items and buying the cheaper but a better quality, one can save the money. For instance, a candy bar from one company will cost your kid less than the same kind of candy from another brand. If he/she is really insistent on buying that candy bar from his/her allowance, teach them to make the right decision.
We strongly believe that the overall development of a child is brought about by the joint efforts of the school and parents. We are of the view that teaching children the crucial skill of money management is not the duty of the parents alone. Since school is where a child spends the majority of his/her time apart from home, the lessons like this one are to be imparted in the school as well. This is why we, at the K.R. Mangalam School, always try to inculcate these values through our teaching methods and interactive play sessions. We have regular parent-teacher meetups where issues like this one are discussed. We convey tips and tricks to the parents to enable them to help the kids in not just the academics but also in the wholesome development of the child.
Each and every child at the K.R. Mangalam School are encouraged to think freely and his/her inquisitive mind is never hindered under unnecessary pressure. We believe that whether it’s handling their finances or their daily lessons, children need to learn by practical application. The things that they learn hands-on are the things that they effortlessly remember. To that end, our world-class classrooms and laboratories are equipped with the latest technology that can supplement the things our students learn in their books. Over and above all, the strong and expert guidance provided by the teachers who are there with the students at every step of their way perfectly helps lead the students to attain success in not only their professional lives ahead but also in their personal lives.