You are here: Home > Finance > Teaching budgeting to our child

Teaching budgeting to our child

gygyMany adults do not know how to manage finances properly, because it was not taught since childhood. If you want your child to be financially mature as an adult, you have to start letting your child to handle their own financial problems. All you need to do would be teaching and guiding your child, in order to continue in implementing good financial management. On this occasion I will discuss some financial habits that should be taught to your child.

Make a Simple Budget (Budgeting)
Budgeting is the core of financial management. How do we teach budgeting to the child?
Child needs much simpler when compared to the adults. Suppose your child usually get pocket money $ 5 per day. To teach budgeting to your child, then you need to give pocket money during the period at once. Start with a small period, for instance weekly. One week consists of 7 days, so you instantly hand over $ 35 to your child.

Surely your child needs to be guided through the utilization of the pocket money. Give the understanding that the money you gave is for one week. Teach simple budgeting to your child, that the child should allocate spending as much as $ 5 per day. If on the day the child is spending more than $ 5 then he must stop spending until the next day. Emphasize that the child should be disciplined in the shop, so that the pocket money spent is no more than $ 5 per day.

Recognize banking
In today’s world, a person’s financial life is always associated with banking. Your salary may be transferred directly into your bank account. The Bank also serves as a storage place for your money. Bank also has several features that you can use as payment of monthly bills such as telephone, electricity, water and others. Therefore, it is important to introduce children to the world of banking. The trick is to open a single special account for your child, and let your child do his own financial transactions at the bank. You need to teach children how to fill out a slip storage or making money, how to queue up at the teller, etc. The important thing is how the child communicates with a teller at the time they wanted to deposit or withdraw money.

Tags: , ,

Leave a Reply

You must be logged in to post a comment.