Money matters and here’s how you can make your little one ‘penny-wise’ as they grow up.
Why it’s Essential: Money may not buy happiness but it is sure essential to happiness. It’s the exchange we pay for goods and services of all kinds and is a mean to an end and a tangible necessity. Considering its importance, it’s essential to imbibe a sense of practicality in kids towards money from an early age. It familiarizes a child with the outside world and keeps them rooted in reality. A fun way to introduce monetary transactions is through toys. Smoby Ice-cream Shop by Simba brings play-value and learning to your child’s life as he enjoys selling sweets and treats through role-play.
Pocket Money: Getting pocket-money to spend on your favorite things is something we’ve all done as we were growing up. A child learns to manage their finances as they start getting aware about their surroundings and by watching you and others around them deal with finances. Whether it’s buying new things from a shop, meeting friends or just going out to eat – it all helps them understand how to adapt to everyday situations.
Parents Discretion: When it comes to finances, tell them age appropriate things that the can grasp and which allow them to be responsible and yet enjoy the pleasures money can buy. Simultaneously, make them understand why being frugal is also necessary. For instance, they could start ‘saving for a rainy day’ or even maintain a common family piggy bank for extra things around the house, for repairs and maintenance and other family purchases. You can encourage them to take summer jobs and internships to give them a real sense of ‘earning money.’
Earning & Learning: You can send kids to shop and ask them to account for it. You may also ask them to help you around the house for which they can earn an extra pocket money. Though it’s not about making them work, but about making them understand the value of money and that they “earned” it.
Which are some of the ways you manage money matters as a parent? Share your views with us and get featured on the blog.