Money Management is an important aspect of an adult’s life, so much so that adults even pay a lot of money just to get educated about these skills. Why do you need to teach your child about money management?
- It builds good spending habits
- The Child can gradually learn and apply the subject matter
We know that these skills are important but they aren’t taught in the school curriculum as such there are a lot of ways to learn Money Management. The most popular ways to teach someone about money management are: –
While a child can learn about money management as an adult it becomes imminent to teach them young as they can make a habit of managing money from a young age among other reasons. So, lets explore the best ways to teach a child about Money Management: –
Books are great resources especially for children as they help them improve their vocabulary and improve their reading and writing skills. There are many books written about several aspects of Money management. Learning about Money Management from books is a kind of hands-off approach for the parents as they don’t need to intervene rather, just buy the books for the kids.
This is a rather cost-effective method to teach kids but is still a very good option as the right book can change the reader’s life. Another problem might be that books can get outdated as the financial world gets more and more advanced.
There are lot of Money Management and Personal Finance Courses on the market especially for kids as well. Courses can range in price from one to another but the good quality ones are more often on the expensive side of the spectrum.
These courses can be immensely useful for the individuals that apply the knowledge gained in the courses. There are many courses available over the internet and offline for children especially. These courses have the advantage of being up to date by the hour as they are updated almost every day in some cases. Even though it is a rather expensive method it can be beneficial if the parents don’t have the time to spend.
Teaching Your Children
Teaching your child is a cost-effective method as you do all the teaching yourself but it is a time intensive activity. This can also turn into a life long lesson as you can teach your child from your mistakes so that they don’t make the same ones.
It becomes important to teach your child everything from start to finish and not just what you know and what is going on. There are several topics in the personal finance domain and the money management domain that you should cover, these include: –
- Saving (How to and How Much to save)
- Debt (Different Kinds of Debts, Credit Cards, and Credit Rating)
- Investing (Index and Mutual Funds, Individual Stocks, Diversification)
- Budgeting (Different Kinds of budgets and Budgeting Systems