Wednesday, April 25, 2007

Financial Values for Kids!

I happened to read an article (Raise a money-smart kid) which reiterates the fact that the process of relating to our money begins from a very young age. Like all other things, how we see our parents relate to money will have an effect on how we relate to it. All parents want their children to appreciate the value of money and to understand it from a young age, so that as they grow older, they make better finance related decisions.
Here are some tips from the article:
  • When children ask for something that you do not want to purchase, don’t just say no or tell them we don’t have money. Explain to them why you are choosing not to spend your money on that particular item.
  • Give an allowance and create a spending plan with their money. For example, a portion of the money goes into a savings jar, a portion goes into a spend jar and a portion goes into a giving jar.
  • Invite kids into the account balancing activities.
  • Teach kids how much things cost.
  • When you find yourself making an impulsive purchase, explain that to your kids.
  • Have open communications at home regarding money. Being secretive and stressed will be passed on to children

PS: This is not a parenting blog ;-) Just happened to like this article.

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