With Christmas around the corner everyone is gearing up for the holiday season. And as you are busy filling the shopping carts and swiping your cards for the purchases, ever wondered what impact it has on your children about money and what perception they hold about it. Unless you have already been teaching them about money and good money habits, they are likely to believe that money grows on trees and is an unlimited resource.
Thus, as parents, the onus is on us to provide our children to impart financial literacy to our children to prepare them for financial challenges of the future.
Here are few simple things you can do to educate children about money in the upcoming Christmas holiday-
Introduce the work-money connection
Instead of giving in to your children’s demands outright for toys and gifts this Christmas, encourage them to earn for it. Ask them to help you with simple household chores which they would not do otherwise and pay them for it. Delayed gratification will help them value things and they will appreciate it more.
Help them develop budgeting skills
Allowances and cash received on special occasions such as birthdays, festivals, etc. can help children develop budgeting skills early on in life. Every time they receive cash, encourage them to distribute this amount in three different jars of spending, saving and giving. This way, they would even learn to differentiate between needs and wants. It is equally important to teach them to contribute to noble causes and the art of giving in their formative years.
Involve them when you go shopping
When you step out for your grocery shopping, take them along with you and ask them to assist you in shopping for the best deals and bargains. Developing savvy shopping skills and the habit of comparing prices from the start will help them spend wisely even as adults.
Pay by cash
In today’s rapidly changing world, credit card payments and online payments have made money invisible. Making payments through cash will make them realise that money is a limited resource and with each purchase, you deplete the amount of cash you have.
Teach money lessons through board games
Few money related board games not only keep the kids engaged during the long holidays, but also help them teach important financial lessons such as managing the cash-flows, keeping emergency funds, making strategic investments for future earnings, etc. as they play the game.
Lead by example
Children are very observant and most of their learning happens through observation. If they see you making financial decisions based on planning and being responsible with your spending, they too will understand the value of money.
Most of us believe, discussing money matters is for the grown-ups and we tend to keep the children out of the conversations regarding money. However, just like all the other life skills, teaching financial skills and imparting financial education from a young age is very important for them to develop a sound financial foundation.
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