Teaching kids to save money and teaching kids about finances will lead to children having good basic financial literacy. Understanding when and how to save money and knowing about the importance of credit and bank accounts will help your child become finance literate from an early age.
At an early age, kids fail to understand what saving money is and why it is considered important and this is the reason why they don't even know how to save money or why they are supposed to do it. It is important that kids know how they should save money, why is it considered important and where they are supposed to put the money they are saving.
How are kids supposed to save money? That's a good question to ask and it is important that kids get an idea about the world of money and understand that even adults save money because they might want to buy something for themselves or they might need money at a specific moment in their life which they did not plan for, like a financial crisis.
Kids could receive money from their parents and their family members on special occasions, like birthdays for example, and since they don't know the importance of saving some money, they put a plan to spend the money they have received on buying things, even if these things will be all about toys, and this is exactly when parents are supposed to teach the kids more about the value of money and that they are not supposed to spend it on things that are not necessary ( • How to Make Money Tips... ).
Parents are supposed to teach kids how to save money but this comes after telling them more about the importance of money in general and why they will need to save some of it; it could be for buying something in the future, it could be for any unplanned things that might appear, and it could be for other reasons that might depend on the person himself/herself.
A parent should teach the child about earning money and investing it in something that he/she wants and this will be done by teaching them about earning money which happens through working, it could be through working for a company and doing some work for it and thus the salary becomes monthly, and it could be also through working for specific hours and getting paid for these hours.
Since the kids are still young enough to work and earn money, parents should help them by giving them some money for the things that they might be helping with at home, such as cleaning with them, washing the car, helping with other things that their parents could pay them for.
Where to save the money I have? That's a question some kids start to ask when they are taught to save money in general. There are different places for kids to save their money, it could be in the bank accounts made for kids and it could be through the easy way which is in a moneybox, but they should know how to save their money in general and not just go out spending the money for the sake of doing so ( • Financial Literacy for... ).
The next step in financial education and literacy for kids is knowing more about banks and knowing the difference between debit cards and credits cards ( • What is Credit Card? F... ) and in which case will the person use them.
Sometimes parents could not afford all the things that their kids might want and thus they might not be able to get the kids everything they ask for which is an enough reason for the kids to know that saving the money they receive at any of the occasions they attend will help them to get any of these things which their parents are not able to get, not because they are expensive but because they have got them lots of things before and they need to pay the money for other things.
Do your kids know about saving money and the importance of such a thing which they should know more about from an early age? This should be the part of parents homeschooling their kids, to educate them more about finance and make them more educated on that matter.
This financial education video helps with teaching the kids about saving money and the ways of doing so. Let them watch this video and tell us about the feedback!
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12 окт 2017
