MySkool Times

Kids, at a tender age, do not understand the value of money and it becomes quite a challenging task for parents to teach and inculcate money-saving habits in them.

In this article I’m going to cover some easy tricks that will help you inculcate money saving and smart investing skills in your kids, so that they learn the art of managing their finances- which is one of the most important steps in the life of an entrepreneur.

Teach your Kids to know and value Money as early as possible- There is no specific age to start saving money. Valuing money and saving should start from as early as 5 to 7 years of age. It can be started even before that. For example, tell your 3-4 years old the importance of money through moral based stories.

Teach them to set money goals- As a mentor share your life’s journey as to how you started to save money as a kid. It will help them to know the value of money.

For example, you can share how you saved money and invested it in gifting yourself your favourite watch in childhood. This helps your kids to set their money goals effectively.

Congratulate & reward them when they save a good part of their pocket money- Parents should keep a tab of how kids are spending their pocket money. You can tell your kids that you will give them some incentives (may be monetary or a small gift) if they save a good part of their pocket money. But always keep in mind that the rewarding amount should not be too low or too high.

Make Your Kids Champs in Money Management- Money-saving and money earning are such important topics that parents should discuss with kids. One a regular basis, let’s say per month, have a friendly discussion with your kids about their spending and saving. When you feel that your kids are being extremely extravagant, guide them with care. Help them to understand how much and on what, spending is worth it and on what it is not!

Overall money management is an art and science, both. Teaching the young entrepreneurs these tricks would help your kids learn the value of money, saving and investment.