Money Management for Kids

The most important thing, to begin with, is a child should know what money is? What is money needed for? What is the value of money? How do people earn money? Children should first have a piggy bank where they keep the little money they have. Once they know the denominations of the notes and how much it actually is it will make it easier to explain. Children should be taken shopping and they should be aware of how much an item would cost. It could be eatables, grocery uses, toys, chocolates, crisps, etc. Children should know that anything they want or demand costs money.

Not each and everything can be given to them as soon as they ask for it. When children start to throw tantrums at the store and retaliate they should not be. Once it is given it would become a habit and can get very difficult to control especially in public places. 

Children should be given a small allowance for them to buy something they want. They should be allowed to buy something from the store on their own. They should be aware of the “budget”. They need to know the difference between expensive and less expensive. Not everyone can afford expensive things. They need to realize what is a necessary buy and what is not that important.

If the demands get too high or unrealistic they need to be told that there is a budget for everything and it may not be possible, or another way could be The child needs to earn a big buy. HOW? Give children tasks like: 

1.  Their room needs to be neat and clean.

2.  No misbehaving.

3.  Concentrate on studies with good grades. 

If these are fulfilled they should be incentivized. They need to learn a sense of responsibility.

Children should also know about credit cards and that they can be used in place of money at a store. Money management is very necessary for a child’s growth. Teach your child about money and entrepreneurship by enrolling in our programs at LogiQminds.

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