Ways to teach kids about money!

The common question which revolves around the verdict that teaching money is an important life skill for kids is, when is the correct time to start this? It is believed that once the children are old enough to understand that they should not be sticking those pennies in their mouths, they should be introduced to the currency. 

No matter what sort of currencies or negotiable instruments we are using, we must explain the utilization of each of such things to the kids. A few of the ways that could help this learning process could be as follows – 

• Instilling the habit of saving – Children often know money as a medium of exchange which they could use to buy anything they like. However, another aspect of money is saving. When they are aware of saving they understand the value better.

• Present them opportunities to earn - for understanding the better usage of money kids need to have some. However, teaching them that it requires something for them to earn it is even more important. Consider requiring them to do chores in return.

• Facilitate them with great spending decisions – kids are very young to understand the smart use of money. Therefore, requiring close help from their parents.

• Teach the kids that the money they have can grow - other than teaching the kids the smart decision of spending their money, teaching them that they have ways that could multiply the same would be more beneficial to their knowledge.

These ways can prove to be beneficial for kids' financial literacy. However, it is important to know at the end of the day it is your behavior that serves as the model of financial behavior for your children.