We all deal with money on a daily basis. Every day we encounter situations of save, spend and share while handling money.

Going by public transport or eating out or helping someone, everything involves money related decisions. Today we are making such decisions, tomorrow our children will face similar decisions in life.

How about we starting to teach them about money from an early age. Research proves that “a child can develop good money habits as early as age seven.” It will not only help them to learn to manage money wisely but will also develop a healthy and positive relationship with money.

When we teach our kids to read, we start with the simple alphabets of ABC. When we teach them about money we start with the three “S” – SAVE, SPEND & SHARE.

Let’s begin with –

Saving

We all know the phrase “A penny saved is better than a penny earned.”

But do we actually practice it?

Saving is difficult, but we also agree it is important. That is why we ensure our children learn how to save. Because children develop habits early in life. Habit of saving is no different.

We can begin their journey of saving by teaching them to always save a portion of the money they receive before spending it all, putting spare change in a jar or save for something they always wanted.

It will help them learn value of money and a habit of saving now.

Spending

Children or adults, everyone likes to spend. We have seen our parents spend money on us and our children watch us do the same. Something which nobody has to teach. One thing we can surely teach our children is it to spend wisely.

We can make them smart spender by teaching them the difference between needs and wants. Suggest them to shop with a list to avoid impulsive buying. Always compare the price before buying. You can also help them to stay focus on their goal.

A good exercise for your children will be to write down their expense every time they spend their money.

They will be surprised..!!

Sharing

We were taught “Sharing is Caring” when we were young and now we pass those lessons down to our children. We teach them to share their games, stationery, food, toys etc. but we don’t talk much about sharing their time and money.

Teach them to donate some of the portion of pocket money or money they receive to less fortunate people or they can go and spend time in orphanages or old age homes.

Sharing is one of the most satisfying and wonderful feelings in the world. Giving what we have to someone who doesn’t have it spreads happiness all around us.

Involving children in the process sends a positive message to them and it gives them the power to spread joy and happiness all around them.

Let’s Start Today!

The best way to teach about money is to give them 3 jars. Tell them to label each jar as: SAVE – SPEND – SHARE.

Whenever they receive money, help them divide the money into these 3 jars. As a family you can decide on what percentage to allocate to each category.

Beginning their journey with such small lessons will result in creation of powerful and positive money habits.

Contact us to know more on financial education for children.