Help Your Kid be Penny-Wise!

- By Ipshita Raman 

Lead the way for your children to be Money-Savvy individuals. 

Instilling the value of money into your little tot right from a tender age is imperative. By doing so, you would be helping them create a foundation upon which they would confidently go on to cultivate future decisions that are based in the realm of logic and reason. This little, but highly significant, parental nudge would help ingrain in the child the importance of not just saving money and making economical use of it, but also of the safety and security it brings. 

Help set up a Clear Jar 

To begin with, you can introduce your kid to a pristine Clear Jar. Stockpiling coins and notes in it would not only help kick off their first venture into saving money but it would also help in developing patience within them. Furthermore, the visual nature of the clear jar would enable them to carefully observe money accumulate over time, which would undoubtedly be a source of encouragement to save more. 

Help them realize that things come with a price attached to them 

When it comes to children, serious conversations about money usually fall by the wayside. They are more likely to respond to you if you try to educate them through a practical demonstration. Take your kid to the nearest shop and buy them something they like from the money saved up in their clear jar. Dipping into the jar they have invested time in will give them a reality check which would help them value money in a way a simple sit-down cannot.  

Help them create a budget 

You may have either been witness to or have been at the receiving end of the wrath unleashed by children at a toy store or, for that matter, any place where kids can be easily seduced by products strategically marketed toward them by big corporations. To avoid drama and more importantly to help make them aware of their expenses, it is incumbent on the parent to not just draw a line for their child but involve them in that process. Let them know that if they were to go out to the store or a mall or any public place that displays innumerable items up for purchase, they would need to stick to a budget and not overstep it. 

Encourage your child to work to earn a buck 

Impress upon your child that it takes tremendous effort and work on one’s part to earn money. And as they grow older explain to them that they would need to earn their monthly allowance by doing chores around the house. Household chores like cleaning their room, washing the dishes, taking out the trash, helping in the kitchen, buying groceries, etc., would definitively let them know that money is earned and is not handed out to them as per their whims and fancies.  

Help them prioritize their needs over their wants 

Before their inevitable run-in with the latest products that are out on the market, try having a friendly conversation with your kid about the importance of avoiding unnecessary purchases. They do not need the newly released iPad when the computer at home gets the same work done. They do not need the latest and the most expensive PlayStation. And they certainly do not need a pink cardigan that replicates the one worn by the popular girl in school. It is important they realize that the same money can be used more productively. 

Lead by example 

Children try to emulate the behavioral patterns of their parents right from a young age and look to them to lead the way. Hence, if you need your child to follow even some of the things mentioned above, then it would be required of you to practice what you preach and lead them by example. This holy grail of parenting would not only help them value money but value everything they have.