Wednesday, 19 June 2013

Interesting Ways To Teach Kids About Money

Image: Courtesy of Madame Noire

I had never made it a secret on my desire to teach my children about money from an early. And it was the very same desire that led me into looking for something unique to give them a Christmas present - when I purchase the automatic money counting jar for my kids.

So I was browsing through the Internet, I came across this article titled '15 ways to teach kids about money'. Some of the points that really stuck to me were:

Communicate with children as they grow about your values concerning money — how to save it, how to make it grow, and most importantly, how to spend it wisely. I promised myself that I would talk to my kids about their finances before they have credit cards over the limit and an undesirable credit score. Finances: a topic that needs to be addressed sooner than later to give your children the best chance at having healthy financial habits

Difference Between Needs and Want
Help children learn the differences between needs, wants, and wishes. This will prepare them for making good spending decisions in the future.

Setting Goals
Setting goals is fundamental to learning the value of money and saving. Young or old, people rarely reach goals they haven’t set. Every toy desired should become the object of a goal-setting session. Such goal-setting helps children learn to become responsible for themselves.

Saving Versus Spending
Explain and demonstrate the concept of earning interest income on savings. Consider paying interest on money children save at home; children can help calculate the interest and see how fast money accumulates through the power of compound interest. Later on, they also will realize that the quickest way to a good credit rating is a history of regular, successful savings. Some parents even offer to match what children save on their own.

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