Fi­nan­cial man­age­ment: Spend­ing money wisely

Panay News - - METRO BACOLOD - By Glorimie S. Vil­laeba, DepEd Capiz Di­vi­sion

NOWA­DAYS, it is re­ally prac­ti­cal to teach chil­dren on how save money. Sav­ing money i s one of as­pects of telling to your chil­dren that money is a thing that can­not just eas­ily earned.

In fact, ac­cord­ing to a 2016 Na­tional Foun­da­tion for Credit Coun­sel­ing sur­vey con­ducted in the USA, just 56 per­cent of adults give them­selves an “A” or “B” when grad­ing their fi­nan­cial knowl­edge, mak­ing the fi­nan­cial ed­u­ca­tion of the next gen­er­a­tion even more ur­gent.

As adults, we need to make our chil­dren or stu­dents to save or to spend their money wisely. In this way we can help them to be a re­spon­si­ble per­son as they learn to value the im­por­tance of money mak­ing them be­come money smart from an early age. In this ar­ti­cle, I’ll tell you some ways on how to do it.

1. Needs vs. wants

Usu­ally, kids have a hard t i me distin­guish­ing what are the things they need and what are the things that they only want. And I be­lieve that this must be the first thing to teach them. This is one of the best ways for them to save money. Ex­plain to them their needs in­clude food, shel­ter and cloth­ing, the rest are just wants. Dis­cussing them these things will surely help them to un­der­stand what needs are and what wants are.

2. Let’s ride the piggy bank.

Chil­dren are imag­i­na­tive peo­ple. They like it when some­thing seems eas­ier for them to do. A piggy bank can be a great way to teach your kids the im­por­tance of sav­ing, while giv­ing them an easy way to do it. Piggy bank is a way for sav­ing fu­ture money and telling them the im­por­tance of sav­ing money is a must.

3. Give them re­wards.

Re­wards and i ncen­tives? Surely, chil­dren will like it. Peo­ple in na­ture like it when they ac­com­plish some­thing they think is very im­por­tant and they get a re­ward. Af­ter all, who doesn’t want re­wards like money? Well, your re­ward could’ve been an­other like things they like in­stead of money.

4. Set your­self as an ex­am­ple.

This is the best way to do it. Set­ting your­self as an ex­am­ple of how to save money is the best. Let your chil­dren tell ex­actly like “Oh my par­ents are good in sav­ing money, they told me that it is im­por­tant to do it for the sake of my fu­ture.” In this way, you’re not only telling them the im­por­tance of money but the value of life as well. ( Paid ar­ti­cle)

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