The global economy is something that has been changed over the year very fast. It is uncertain and no one will tell you what is going next? In such circumstances, it is good if parents seize the opportunity to teach their kids the value of being financially prudent.
There are many adults who get into financial trouble through no fault of their own, especially in a sluggish economy with double-digit unemployment. But those kids who learned valuable financial lessons at an early age fare better when times are tough or not in their favor. But it is only possible if parents impart their financial values and good financial habits to their kids. While schools in Singapore can also reinforce these lessons, but it really needs to come first from the parents.
Here I am going to discuss the top four tips to raise a money-smart kid. Just have a look!
- Model good habits
Good or bad habits builds a person character. If your child adopts good habits then he or she will become a good person otherwise no one will stop them to indulge in a bad company. Similarly, if your kids don’t observe your smart decisions about money then there is not any kind of benefit of providing allowances, rules and money management lessons as they are not effective at all.
It is good to be a role model. Show your kid that how you shop, how you’ve put off your own wants and needs until you can afford them comfortably. If you disciplining yourself to use smart money habits then you can easily point out your kids how those habits work in your daily life.
- Get them involved in family shopping
Never say no to everything your kids want to buy as it lays a negative impact on them. Try to get them involved in a family shopping. It is a good way to learn how much cash is required for various kinds of items for everyday use. It helps them to start figuring out the importance of spending wisely.
- Differentiating between needs and wants
Teach your kids that needs and wants are two different things. They are not same at all. Let’s recognize them the difference between both of these things. As this is the key to being good money managers.
- Developing the habit of savings
Teach your child the importance of saving and encourage them to develop this habit. Initially, when your kid is small, it’s your duty to save on their behalf. As they grow older, you can tell them to save on their own. Build a habit of saving some portion of their pocket money for their future.it helps them in creating a secure tomorrow.