Here is what you need to do if your child does not value money!
- IWB Post
- March 16, 2015
Amidst all the credit/debit cards, mobile payments and online transfers, your child may not be valuing money as much as you do. With the usage of Smartphone from such an early age, the kids are now well-acquainted with the easy mobile apps that make money handling more effortless and hence, the value further degrades. Following are few ways in which you can change this habit:
1. Let them earn –
2. Help them invest – This coming month before giving them their pocket money, ask them to divide that into two – savings and spending. In this way, every month they will be able to save some particular amount, be it just Rs. 50.
3. Tell them about home-budgeting – The kids must understand that their clothes and gifts are not the only thing money is spent on. Talk to them about home budgets involved in weekly rations, vegetables, their school fee, fuel, electricity, etc.
4. Budget control – Take them grocery-shopping with you and tell them how you buy things from markets. Apart from product quality, share with them how you compare prices of products and then choose the effective one. Inform them why you are opting for a larger pack or buying the pack with 10% extra or something that has a free product to offer.
5. Take them to your office –
6. Take them to bank – Watching bank transactions helps kids understand what cash actually is. Let your child be involved as much as possible. As your child gets older, consider opening an account for him/her, and help your child learn to track his savings. Many banks and credit unions have special no-fee accounts for kids, complete with educational materials and online activities.
7. Donate as a family – You can donate food and clothes to the needy people. Or, you can also go to an animal center if your kid loves animals. There you can buy supplies for the local animal shelter or volunteer together to help feed the animals. This will make the kid understand how some people are fortunate than others in money matters.
8. Set a family savings goal – If your child is after your life to buy something for him that is not very important, do this trick. Tell him you have no money left and that all of you in the family must save some to buy what he is demanding.
NOTE – The Reserve Bank of India has officially allowed children above 10 years to own an account and issue cheques or even use cards. But at that, as a parent, you should restrict the amount they can handle. There are cases of frauds where kids would tell the password to unknown people, so keep a check on that. Also, open kids’ bank accounts in banks where the minimum balance limit is either low or zero.