1. Your kids should know the value of money. You are working long hours each day just to bring food to your table. Perhaps you are like many other parents who resort to multiple jobs just to make ends meet.
Your kids need to see that money is a precious commodity. Teach them to prioritize expenditures. Involve them in preparing your monthly budgets. Provide them with piggy banks where they can store their savings. Reward them for doing sound financial practices.
2. Introduce your kids to banking. When the kids are able to write, bring them to the bank that offers bank services to kids. Walk them through filling up the deposit and withdrawal slips. Explain to them other banking terms such as interest and taxes.
3. At the right time, teach your children about investing. I’m sure you can explain stocks in terms that your kids can understand. Tell them how the money they place in a company today can earn them huge amounts of money in the future. Investing has the same dynamics with saving.
4. Introduce them to lending too. Show them how other people’s money will work for them now. However, the youngster should also learn to use borrowed money wisely. And borrowing is the least option in raising funds.
Teaching the kids sound financial management lessons is both easy and difficult. But if you are successful in instilling these lessons to your kids, you would realize that the rewards are worth the effort.