Friday, December 7, 2012

How To Create Good Financial Habits In Your Children


Children are easily influenced by the people they look up to. Many times, we hear people say that a kid resembles their father or mother in behavioral traits. That is because it is the parents or the older family members whose behavior influences a kid. Creating good money habits in children is very essential. Money is integral to all our lives. But money should not be managed in such a manner that it becomes the focal point of a person's life.

Creating good money habits in children doesn't mean teaching them to save all their money. A person with good financial habits must know how to spend, save and manage individual and general expenditure. In a child's early years, piggy banks for children can be a stepping stone towards creating balanced financial habits. A child must also understand that saving money is not the only way of managing their finances. It's the duty of parents to make them realize that there are things more precious in life than money.

Spending and sharing when required is also considered to be a good financial habit. A child needs to understand that there are critical junctures in life when spending money can bring happiness. They should also help less fortunate people around them with money, when required. Parents should try to cultivate spending and sharing habits in the family. Buy your children large piggy banks and ask them to save from their pocket money or allowance for a particular purpose.

When children start to move towards the teenage period, let them manage their own expenditures. Allow them to have a limited amount of money in hand and observe the ways in which they are utilizing it. Don't nag or criticize. Watch the ways in which they manage their finances. Guide them as necessary by providing them with options.

The mind of a child is highly susceptible to their environment. It's important to guide them down the right paths. Teach him or her to be liberal with money. The best thing about children is that they are fast learners; however, there is a catch. They learn virtue and vice with the same lan and speed. So watch out. Be careful that your child doesn't grow to be a miser. Lessons for creating good money habits must not produce a solely money-minded adult.

As a parent, when you are helping other family members or friends with money, make sure that your child observes this. This will make him or her realize that money is a source of security not only for an individual but also for the others around them.

Last but not the least, gift your child with money sometimes. Money is an amazing tool for reinforcement. If he or she does something special, for example, scoring well in exams, winning a competition or successfully completing a course, reward them with a little money. The spark of happiness in their eyes will make you happy, too. Don't miss it.

Samoan Etiquette: Mind Your Body Parts   Teaching Values to Kids   Teaching Values to Kids   



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