Techniques on How to Teach Kids on Cash
Most of the parent reward their children with allowances but it has come to realize that only a few or none will save the pocket money that they have been given by their guardian. You need to take the responsibility as a parent to teach your children about the money since there is no other source they can learn from on saving. Most of the teenagers lack knowledge and information on personal finance hence it is important to teach and recruit them. Children needs to have information and knowledge on handling money and importance of saving, this will make it easy for them to adopt the culture thus spend well and save the allowances that they get. There are techniques on how to teach kids on cash this include.
One of the guidelines is the ditching of the system of allowances. You need to avoid giving your kids allowances for something that they have not worked for this will help to avoid having the expectations that are not real. You need to give the total earning to the kids after they have accomplished their task or chores thus you need to avoid paying the prior the set target hence they will strain to complete fast. You need to make sure that you make the payment that is equal to the work that they have worked for hence you need to formulate a checklist of the chores to ensure that you make the exact payment.
There is the tip of building good habits on your kids early on. You need to show them besides spending, they need to save hence this gives them the importance of not spending all the cash they earn hence they grow to build on this habit. You need also to motivate them that you will boost them with some cash one they hit the target hence they will minimize on the expenses and increase in their saving.
In addition, there is an imperative guideline of outlining and letting them know the danger of mismanaging money . You need to tell the importance of part time work, especially when in college hence this will help in adding the saving in their account when they stay idle there will be spending and no income increase.
There is the guideline of leading by example as parent to the kids on how to use and save the cash. You need to explain to your children why you cannot buy the item, this will make them understand hence they will be able to follow your example thus avoid impulse buying.