Teach your kids the value of a dollar and how to manage money with online tools like Finance in the classroom, Secret Millionaires Club, Money confident Kids, Kids Finance, Money Management, Three Jars and more.
Making your kids habitual to put a few pennies in a piggy bank is not enough, also you should teach them about how to handle money responsibly. Unfortunately, personal financial literacy is not taught in schools to make kids money-smart. However following the global financial crisis that began in 2008 – a high interest for having personal finance classes in the K-12 setting is noticed especially for this time. Financial literacy is the capability to use knowledge and skills in making right and well-versed money management decisions. Making financial fundamental strong in students will also help them as citizens understand and make choices about many of the critical issues confronting the nation. It is believed that giving allowance is the best way to teach a child to handle financial responsibility. It can…but result is limited. You can prepare the children more with realistic life lessons, which are available through most advanced online tools, videos, and tips given below.
It’s very important to make child fiscally responsible, but make sure that you should work on your child’s financial awareness early on, because once they’re teenagers, they are less likely to pay attention to your erudite advice.
Before we started with online tools, must read out given below six tips to start teaching kids about money from an early age:
1. Use everyday teachable moments.by discussing with your kids in supermarkets about why it’s necessary to make choices, purchase generic brands to save money or go to different stores to take advantage of sales. Let them pick out a fruit or vegetable to buy, explaining that money is limited and it’s important to make right decisions to avoid going over budget.
2. Give them an allowance. This is a common practice. Some parents disagree on the effectiveness of this approach while others believe that chores should be necessary to contribute his or her time to help with the family work load.
3. Spending vs. saving. Whenever kids want to buy a more expensive item, you can tell them that in order to do that, they have to set money aside. For this, it is good to use a modern piggy bank, which separates money between spend, save, donate, and invest. Optionally, you can even select to pay them interest on their saved or invested money to show them the added value of not spending all their money at once.
4. Teach budgets. Let them teach how you make budget for month by deducting each expense—groceries, electric bill, phone bill, insurance, savings, etc from a monthly salary, also explain how you deal with unforeseen issues that arise like car breaking down, eating out and purchasing clothes for fun from the money is left in the budget.
5. Let them make their own decisions. Parents can teach good money habits, and then should have to step back to see how their kids make their own goals and decisions. Thereby, they will enjoy the process and learn from their mistakes. Parents can of course step in only when advice is required to get them back on track.
6. Don’t skip the credit lesson.Although young kids won’t have their own credit card, teaching them about borrowing money can help them know the concept of spending money you don’t yet have. If they want to borrow money to buy something right away that they can’t afford, you can give them a loan and then charge interest.