Financial Literacy is useful for a lifetime!
Money doesn’t grow on trees, a famous saying which is true even in today’s time. It must be remembered in today’s era of online shopping. Before developing the habit of responsible spending in your children, you must adapt it first. We easily get tempted by discounts, attractive representation of things of our interest and the notifications of shopping applications. The key to practice responsible spending is using analytic approach towards products before actually spending money to buy them and most importantly before buying anything, ask yourself a question, “Do you really need/require it?”Many things we buy to keep up with the trend, or it was looking cute. So before spending your hard-earned money, THINK.
The best way of developing the habit of responsible spending is to start early. Therefore, we must educate our children regarding this, so they may benefit from this habit for a lifetime.
Here we have some suggestions for you, that you might want to consider in order to develop a habit of responsible spending in your children-
Buy them piggy bank/saving box/money tank- before buying it, sit with them and discuss why your child must consider it for saving money and most importantly suggest them exciting ways of spending saved money to buy what they want. Tell them how saved money would empower them in making financial decisions. This would get them excited to start saving. Once they would taste the pure joy of buying things with their own saving, they would never let this habit go away.
Give them incentives on saving- give them a target, and encourage them with incentives on saving. For example, tell them that they would get 5% more or whatever suits you on their savings, to encourage their habit of saving.
Another interesting measure of building the excitement- we deny buying many things to our children, like when those things are not required by your child at that time. Therefore, you can tell the child to save money and buy those things. This would serve two purposes, one is that your child would get encouraged to save money and two is that your child would realize the real value of those things when he/she would buy them using their own saving. In many cases, children deny buying things after saving money, as they realize that the thing they were demanding was not actually required and the saved money can be used to buy more important things.
These are a few tips to encourage your children to develop a habit of responsible spending/saving money. Teaching values like these stay with them for a lifetime and they tend to manage financial situations better in future.
So let’s remember this famous saying always: “The penny saved is the penny earned.”
zamit- Let’s begin!