It is very important to introduce the function and value of money at an early stage so that children understand how to use money. It’s easy and parents can teach them how to manage and save their finances and sort their money. Children are in a period of growth and development, especially when they enter kindergarten. Children of this age are usually inquisitive and absorb new knowledge quickly. At this point, parents can start introducing their children to finances.
- GIVING ALLOWANCE:-
Parents have many way of financial literacy for kids from this pocket money is one the method. Pocket money is a method parents can use to teach their children to be responsible with their money. Giving pocket money from school age helps children learn the value of money. Children who receive pocket money must decide what to buy with that money and how much to save. If you have to save some pocket money, learn to wait until you get what you want. Pocket money also helps children understand the consequences of spending money. Allowing children to make mistakes, like spending money on ice instead of waterproof sand sets, is part of the learning process.
Saving is a positive and beneficial activity that you can teach your children. Teach your children to save extra pocket money every day. If you want, buy a piggy bank in the shape of your favorite animal to encourage your kids to save. It also tells a maxim. Saving is the root of wealth, luxury is the root of poverty. It also educates children about the benefits of saving such as: Having a lot of money saved that you can use to buy things you want. It is also believed that teaching children to set aside some money for savings shapes their saving behaviour.
- TAKE THEM TO SHOPPING:-
There are many financial lessons that can be learned from taking the kids shopping. When shopping, take your children to a market or supermarket to introduce them to the practice of direct buying and selling. Let children see their parents shopping. Children, of course, know how to do business by paying a certain amount of money to get their purchases.There are additional lessons for children brought to the market to shop. It means that children are accustomed to the system of bargaining in transactions. Plus, kids record what they have to buy for their daily essentials.
- TEACH FINANCIAL SUBJECTS:-
Parents should start financial literacy classes for kids. Of course,teaching about finance is not an easy task. It should be as simple as possible so that the child can understand it. Children’s ideas about how to get money are still very simple. Many children think that money is given for free. Children’s knowledge of money is still very limited and the role of parents here is to inform and have a clear understanding of where money comes from and how it is managed.
Upsurge is a great way to teach kids financial literacy. You will also learn how to become financially literate by gaining experience and information on how to teach financial literacy to your child.