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Teaching Your Kids How To Value Money

It is a known fact that children imitate their elders in most things, both good and bad. So, it is our duty as parents and role models to teach our children the important lesson of how to manage money as well as how to value it. Here are a few things that you can do to get started with teaching your children, no matter what age, about how to be responsible with money.

Teach them young
Research shows that kids even as young as 3 years old can understand the concepts of savings and spending. So, it’s a good idea to start early when teaching your children the basics of money management. Give them instances from your own experiences that they can relate to and understand better.

Take them to the bank
When you visit the bank or ATM, don’t leave your kids at home, take them with you. Let them see what a bank looks like and how it functions; same goes for the ATM. To get your kids started early on the habit of money saving, you can also open up a junior savings account for them if possible.

Work out an allowance
If you have school going kids, why not start them on a weekly allowance. Give them a stipulated amount that they can buy things with; let them learn how to manage money effectively by letting them handle it independently and make choices of their own.
Go shopping together

Another great way to teach their kids how to manage money is to take them shopping with you, and give them a small amount which they can use for their own shopping. Let them evaluate the prices of things like fruits or candies and gauge how to best use their money for the things they want.

Remember, you can start early, when your child is 3-4 years old, with these fun, creative ways. The attitude you nurture in them towards money, will last them their lifetime, so make a foundation that’s simple, yet strong.

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