As has been said more than once, people often have very low financial literacy. The main reason for this is the lack of special training in schools, as well as the ignorance of parents about educating their children on the subject of money. And money makes a choice. Teaching our children to save regularly and invest wisely will help them save as much money as they can and maximize the amount they spend.
Children’s daily decisions about what to buy can have a more negative impact on their lives than their worst investment decisions. Here are 15 easy ways to teach your kids how to manage their money better, according to Assignment Help UK. These expert guidance of law assignment help UK helped me a lot and I started its implementation on my nephew and niece and really it works.
- As your children start learning to count money give your child enough information on the subject. The two main ways of learning that you can apply during this period are observation and repetition.
- Discuss with your children the financial decisions you make because it shapes their minds and habits – how to invest, how to save and most importantly – how to spend money. Remember that you must do what you “preach” or it will have no effect.
- Make your kids learn the basic differences between the desire and needs. Watch some tutorials about on the differences to make them better understand on how to spend their money smarter in the future.
- Help your kids set some goals like buying a toy can be a good lesson for money. Such goal setting helps children to be much more responsible in their purchases.
- Tell your children about the benefits of saving over spending. Demonstrate how the interest rate actually works on their money by creating a “Mom / Dad’s Bank” that gives 10% interest per month. Although this interest rate is well above the market rate, you will better demonstrate how money increases over time.
- Give your children pockets of banknotes or coins as it encourages them for savings.
- Take your children to a bank and open a savings account or deposit. Creating a saving habit early on is the key to future financial success. Do not deny your children to withdraw some of the money saved when they need it, because it can give them up this habit very quickly.
- Saving money saved, spent and invested is another important skill that young people must learn. To make it easier, draw a notebook with several columns in which children can record the movement of their money. To each page, you can attach an envelope in which to put various receipts, bank statements and more.
- Use weekly shopping as a lesson on the value of money. Very often shopping in the supermarket is the first contact of children with the topic of spending. Smart shopping (price comparisons, promotional purchases, shopping planning) can save a significant amount in a household and make it a fun experience.
- Allow your children to decide what to buy. Whether these solutions are good or bad, they will learn many important lessons from them. Before making a purchase, you can encourage them to make a kind of list of pros and cons of each product, as well as find the best offer on the market by doing a preliminary study in a real store or online.
- Show your children how to rate ads on the Internet, on television, on the radio, in newspapers and magazines. Does the advertised product really do everything the ad says? Is the price really the real price at which it can be found in stores? Are there other (better) products that do the same job but are at a lower price? These are issues on which I intend to write a separate article, because the problem is really serious. My nephew sees an ad for an “amazing” toy or food on TV and immediately wants to buy it. To the argument that it is expensive, he replied that on television they said that “it is not expensive at all, it is even quite profitable”.
- Warn your children about high interest rates on some loans. If you lend them small interest rates, they will quickly realize how expensive it is to use others’ money to buy goods.
- When you use your credit card for in-store purchases, you can explain to your children how credit cards work, what their grace period is, how to protect themselves from fraud, and more.
- Teach your children what credit cards are used for. Many young people start using these cards for daily purchases and withdrawals, repaying only the minimum during the grace period.
- Discuss your financial affairs with the children at regular family meetings. The lessons they will learn at these gatherings will be invaluable for their future development and attitude towards money.
Hope the article helped you in teaching your kids about how to save money and how to make the best of the money they have in their pockets. Hope you will like the article of Assignment Help UK.