How to Teach Your Child the Value of Money

Many people struggle with handling money. Unfortunately, financial management is an often-overlooked skill that usually isn’t taught in school. So how do you teach your kids the value of money at a young age, even before they start attending the best school in Coimbatore?

Helping children understand the importance of money management

Most kids don’t start handling money until they reach high school or get their first job, but you should teach them the value of cash starting from kindergarten. Thus, once they start going to the best school in Coimbatore, they’ll know how to balance their pocket money.

Here are a few tips that can help:

  • Set a good example.

Children start forming money habits by the time they’re seven years old. And naturally, they’ll gain most of their skills from watching their parents handle money. So if you’re spending a large amount of cash on unnecessary things, try not to do it in front of your kids.

In addition, you can show them that buying things at the store will cost money. For example, if they’re asking for a toy, let them know how much it’s worth and allow them to hand the cash to the seller by themselves.

  • Save money with a clear jar.

Piggy banks are also an excellent option, but a clear jar is the best way if you want a visual representation of ‘earning’ and ‘losing’ money. You can tell your kids to save their cash using this jar. Seeing their savings grow will inspire them to save more. They will see that even just one coin can make a difference.

  • Consider paying “commissions” instead of allowances.

When your kids are young, you can give them an allowance for lunch and transportation. But you can start converting this ‘free money’ into ‘commissions’ once they grow older.

For instance, consider paying your kids a set amount for every chore they do. Let’s say that cleaning their rooms is worth Rs 50, mowing the lawn worth $70, and so on. As a result, they’ll understand that money is earned and not grown on trees.

How can I enrol my child in the best CBSE school near me to learn more about financial management?

Search for a school using 21st-century teaching methodologies, ensuring that your child is equipped with skills for the real world.

 

About The Author:

Reeds World School is recognised as the best CBSE School in Coimbatore, and Reeds World School stands distinguished by their high standards, vigorously pursuing them by nurturing enthusiasm for a holistic learning experience.

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