Financial management: Spending money wisely

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)