August 8, 2022

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4 Educational Strategies for Managing Money for Children, Parents Must Know!

We are used to hearing the term financial management is only related to business/trade, investment, office work, which is usually carried by adults. In fact, financial management should be introduced and trained from a young age.

The family is the smallest element in society that will shape the character and mindset of children until finally in adulthood they can make decisions and take responsibility. The process of learning from an early age in managing money well can strengthen the purpose of life to be financially careful.

Challenge the adage “Dig a hole and close the hole” and reject “Bigger a peg than a pole”. Well, here are four strategies for parents to teach how from an early age children start learning to manage money well.

1. Give money to children according to their needs

It is normal for parents to give money to their children for their use. Is it for snacks, buying books or school supplies, saving, or running a business in “Market Day” at his school.

However, for parents who are financially sufficient, they often give more than their children need. Therefore, if it is an intentional act, then convey it to the children wisely so that they only use it as needed, if there is too much it can be saved. However, if the money given is not enough, then parents should provide understanding in words that are easy for children to understand according to their age.

2. Communicate that getting money is not an easy thing

Lucky for children to have parents with financial sufficiency. Teach them not to stop giving thanks for the sustenance of the family’s financial adequacy to the family. Money is a form of sustenance that God has entrusted to humans.

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Do not feel arrogant because the children’s needs have been met. Tell the children that their parents have worked hard to provide for the family’s needs. There are still many other less fortunate children out there where they have to work on the streets by busking, scavenging, begging, etc., dropping out of school, for a bite of rice to fill the stomach.

3. Set an example for children to learn to live frugally and carefully

Parents are role models for children. Being a role model for our descendants is more powerful than just words. Teaching to manage money efficiently and carefully can be done by parents setting an example to buy what the family really needs. Never wasting any food into a careful form of life.

If there is excessive sustenance, the money can be saved, invested, or can be shared with other people who have financial difficulties. Saving and giving charity are parents’ efforts to instill good values ​​in others.

4. Tell the children to report the use of money

Giving money from parents to children should not be considered completed when the money has been delivered. Parents should encourage children’s sense of responsibility by asking for an accountability report for the money that has been given.

Ask them what the money has been used for. Reports can be submitted orally or in writing by children to their parents.

Those are four strategies for parents to teach their children to manage finances. May be useful!