“Sorry, I’m on a budget.” Does this statement often crop up, especially towards the end of the month? You are not alone. Many of us live ‘on-the-edge’ from time to time as the next payday draws close, and inevitably, our shopping habits need to reined in.
Parents, Kids & Money:
As the month comes to an end, parents often feel the need to keep their kids away from toy shops. “You already have too many toys,” “Do you know that most kids in Africa don’t have any toys?” “Wait for Santa“, and other excuses may come up. If you are one of those parents, it might be worth considering teaching your kids some essential money management skills.
Why train your kids now?
Research shows that early money management training has a big impact on kids, who become efficient money managers in future. In fact, some kids even progress to the stage where they can advise their parents on ways to avoid over-shopping!
So how exactly should you start money management training for your kid? Start simple:
- Define and differentiate ‘wants’ vs ‘needs’
- Quiz your kids on why they want something that they don’t really need.
- While shopping, hand over the cash to your kids and make them pay for what they want. Guide them through the checkout procedure, and try to make them understand how money works.
- The good old Piggy bank never fails. Reward your kids with pocket/pin money and encourage them to save money that they don’t spend.
- Kids are bound to make mistakes with their money. When this happens, suggest how they could have efficiently used their money by pointing out their other options, and explain why some options are better than others.
‘Money Game’ Kids websites:
While the above points are baby steps towards teaching kids about money, training them with tougher financial terms can also be fun. There are several online sites which can entertainingly teach kids to help them understand money. Planet Orange, Rich Kid Smart Kid, Savings Quest and many more kids’ websites are available on the net exclusively for the video-game generation.
In simple terms, get your kids familiar with money!
Planet Orange – http://www.orangekids.com/
Rich Kid Smart Kid – http://www.richkidsmartkid.com/
Savings Quest – http://www.mysavingsquest.com/