With the importance of money management growing because of the inflation on nearly everything, A survey was conducted to see how many families teach as well as involve their children in money management. The result turned out to be a bit of a disappointment as it revealed that only a few families indulge their children in financial decisions, experts believe this to be a bad sign.
In order to teach your child about the importance of money management, you have to involve them in the activity. it is crucial for parents to know that one way or another, your kid will learn how to manage money from people around them if you don't tell them about it from a young age.
So here are a few money moves that parents should make when it comes to teaching their kids about money management.
Give Them Responsibility
By giving your child some kind of responsibility, you are indirectly teaching them to be self-reliant as well as trustworthy adults. You can help them begin their journey of learning about managing money by providing them with some sort of income, for example, allowance for doing some chores around the house or helping them get a part-time job after school.
The main point and goal of this is to provide your child with a source to make money and encourage a sense of ownership within them. After they begin to get an income on a monthly basis, you can start teaching them about the importance of saving,
Open A Bank/Savings Account
Another great way to teach your teen about managing money is by opening a bank account for them so that they can digitally keep track of their money instead of using shoe boxes of piggy banks. Teach them how to use a debit card, and how to write a check despite the fact that they are rarely used anymore. Make them download their banks’ app on their phone to monitor their money. Having them do this will teach them about the basics of budgeting and also enable them to be aware of the money that they have spent and the amount that is left for them to be able to use.
Begin With Simple Budgeting
Teach your teen that the purpose of budgeting is to plan and keep track of where your money goes so that you are able to make informed decisions and choices about the amount of money that you are willing to spend and the amount you are willing to save. Make your kid sit with you to make the budget, record their income, account for the taxes, make a list of their monthly expenses, subtract their income from expenses, and lastly, set aside some amount for savings.
There are some things that schools just don't teach - so it's all up to you!