Money management is one of those few things that most parents, despite wanting their children to learn, avoid talking about to them. The reason, as generally quoted by most parents, is why to burden the tender minds of kids with the complexity of financial management; Let the kids enjoy their childhood, and the adults can handle the money matters. But do you know such a casual approach regarding money management during their foundation years, when they are learning and understanding the world around them, could keep them from learning crucial money-related skills!
It has been seen that when kids learn about the value of money at an early age, they grow into money-smart adults and are better at managing money than those who don’t acquire the lessons early on in life. So today, we, at Dayawati Modi Academy, ranked among the top 10 schools in Meerut, have brought forth for you a few money-related mistakes that most parents make, avoiding which can actually help the kids learn about money, its value, and management in the most natural way in their home environments.
Avoiding money talks in front of kids
Many believe that money matters shouldn’t be discussed in front of kids as they are too naïve to understand the intricacies associated with the same. However, the fact is that children learn a lot from observing their parents. As such, when you keep them away while discussing important money-related matters at home, they will not get to learn about the value of money and why it should be a matter of concern.
No, we are not asking you to keep lecturing them about the costs of the toys and chocolates you buy for them, but at least make them aware of the basic process of making transactions. This will help lay a foundation of money management in their young minds at the right age and without much effort.
Giving in to the demands of kids
No denying all parents love their kids the most in the world. But that doesn’t necessarily mean that you should give in to each and every demand of theirs. After all, showing love and affection shouldn’t be confused with spending money on them. Moreover, when you keep buying them whatever they put their hands on, without considering the need for it, the children will grow up believing that they must get what they wish for. They will neither learn to value money nor be able to manage their finances whenever the need arises.
Letting them spend their pocket money as they want to
Handing over pocket money to kids is a good way to give them the independence to decide what they wish to spend their money on. However, it is important that before giving them the pocket money, you teach them about how and where they can aptly use that money. Besides, do keep an eye on what the kids are spending on as it is crucial to ensure that they spend judiciously and hold accountability for the money they spend.
At Dayawati Modi Academy, one of the top 10 schools in Meerut, we firmly believe that money management is one of the core skills that all kids must be instilled with at the right age. Waiting for them to grow up and then teaching them about the value of money and its management is like simply wasting the crucial years when the seeds of financial management could have been rightfully sown.
We have seen that when kids learn about money management at a young age, they grow up with a better understanding of how to manage their finances well. These kids are generally better at making responsible decisions and have a clear outlook towards money and economics. We hope this article gave you an insight into some of the common mistakes that many parents make in terms of imparting financial lessons to their kids. Avoid making them to raise your kids into money-smart individuals.