5 Tips to Educate Children to Manage Money - Nusantara Women

Some parents may still need the help of tips on educating children to teach how to manage money to their child. Because, not a few parents who have not been able to distinguish between over-indulgence and meeting the needs of children. It doesn't even matter if you're a new parent or one who already has a few kids. Tips to Educate Children to Manage Finances

Lack of financial discipline can carry over into adulthood. Therefore parents should equip children with money management skills early on. Here are tips on educating children to effectively hone their own money management skills. Opening Children's Savings

The best time to unlock a child's savings is when he or she begins to be able to play an active role and understand the concept of money. Children often receive money at special moments such as birthdays or eids. It would be nice for parents to see children when saving the money in the bank. This is a skill that will be useful for life. Teach About Making Money

Some parents usually give 'snack money' if the child wants to clean the room. However, you should not do that, because it is actually a child's obligation. All you need to try is to give them a 'wage' to do other tasks like gardening for example.

It may seem trivial, but paying children for work they shouldn't be doing can be a lesson. This strategy teaches children about making money and hard work. Give a Child a Punishment

Children need to learn about financial penalties. For example, the child commits delinquency that causes damage to an item. Instead, law a child by withdrawing money from their own account. But, also explain about their bad behavior that causes you as a parent to reduce their savings. It will teach them to take responsibility for their own actions. Wise to Manage Expenses

Parents love children, which means there's always an instinct to buy your child the things they want. But this doesn't teach you anything about money management. It's more fun for children when they want something and can buy it with their own money. They will learn valuable life skills by saving and paying for the things they want themselves. Investment

There is no need to teach your child about complicated investments. Give them an understanding of the concept of investing, because these skills must also be developed early on. Teaching children the basics of how investing works will help them in adulthood.

Combining investment knowledge and bank account management skills allows them to become experts at managing their own money.

Tips on educating children to manage the above money should be applied as early as possible, but do not force. Start by teaching them to save in the traditional way as in a piggy bank. Then continue by instilling the basics of knowledge earlier. Good luck.