When the children are growing and developing. How parents taught them was also growing. Especially when talking about money. Yes money, most parents sometimes confused start when talking about money to his son. Perhaps confused how to deliver financial concepts that has become even more complex.
Well, this article will convey how should parents do to teach financial concepts to children:
1. Always use cash
Start to introduce money to the children of the most simple activities such as shopping. Use cash to pay when shopping, teach them how to pay by counting the cash. Also teach children about the discount and use coupons when shopping to get the discount.
When shopping you can also show the children about how to compare prices.
For example, when shopping in the market, let the difference in price for various sizes from one product to another. For example, the price of 1 kg of rice price is different from 1kg of rice. So that they can compare their own prices for the goods they buy.
2. Teach entrepreneurship
Starting your own business you can start to teach early childhood. For example your child to draw or paint a hobby, you can teach your child that became his hobby could make money by selling it.
Teach them to make a place to put the results of his work. You should also help your child to determine the production costs incurred and what items are needed, calculate production costs and additional premium for their time.
You can also use this opportunity to lend and for the purpose and process of loan you give to your child.
It’s up to how you are involved with a business that is run by your child. But this is the first step that is pleasant and helpful to your understanding of the value of work.
3. Set up a bank account setup
Once kids get the money, either through its own efforts or allowance, consider to make an account on their behalf. It will be for their own pride and it teaches them about the savings bank and a note of the withdrawal, a note of the withdrawal and depositing money.
If you want more in-depth, open savings deposits and to show them how the deposit grows over time.
4. Create a destination
When children already have their own savings they can start to set additional requirements they want. Help them determine all the costs associated with its objectives, then develop a budget and savings plans.
It is appropriate to teach children about the goals they want to achieve by reducing the need that is not too important.
The more they are eager to get the rewards then most likely they still make budget.
If the charity is that you think are important teach it to your children as well. Explain to them that the money we have most is money to be donated. When a child gets a salary, allowances fortune or encourage them to want to set aside a portion to be contributed. And if donated to the foundation or to the scene, consider volunteering or having direct visits.