Money is an essential commodity in today’s world, and starting from kindergarten kids’ start getting acquainted with it in some form or the other. Money is crucial to stay afloat, get the basics of life like education, shelter, and food. Budgeting is a key methodology to help kids learn about saving money, starting at a young age. It is an important skill, part of life – to learn to value money and spend wisely.
- Because kids can learn a lot when they are young, and their brains are flexible, good values must start at home. Budgeting is an important thing that parents should teach their kids.
- Starting with small goals and talking to kids about money and how to use it is useful. Primarily because they get the first impression of this “thing” and its value in the world.
- Because saving is a key aspect of earning money, first teach kids about ethics and earning money. And, then move to save money. Kids must learn to always save a portion of their earnings.
- Sharing is an important quality. Teach your kids about its worth because charity always begins at home. Learning to share money, donate it to the needy is a blessing.
- And, teach them at the end of spending money for themselves. Because, first comes saving, charity, and then spending, kids should appreciate the value of each penny.
- As parents, set up small discussions, talking sessions, use daily life examples to teach them about money. Do not ignore this assuming they will learn it by themselves at school or from friends.
Thus, with the above simple but crucial budgeting tips, you can start teaching important lessons of life. Beginning with learning the value of luxuries, essential things like food, shelter, and the worth of money. Kids who learn these at a young age grow up to become responsible citizens and participants of the community. As parents, this should always be your first priority.
Budget & Value
The two things seem the same but are different. The value is the subjective quality of a product, while the budget is the price sticker. Kids must always value the worth of a school bag, for instance, while the price on the sticker may not be that expensive. Starting from a young age as much as 3 years old till they reach 18 years old, teach them how to use money. Do not spend or hand them money without question or hesitation, till you are sure that they value every penny. Make them understand the effort, labor, and time that go into earning it. Budgeting starts at home, and parents are the best teachers because kids always learn by imitating their parents.
Want & Needs
As parents, your goal is to talk to your child about money, and how to use it. Everyone has a budget, an income, and their expenses should be according to it. They should be able to understand to first spend money on “needs” or priorities, then “wants” or lavish desires. For example, often they might want to buy something because their friend has it. Explain to them that this is wrong, and it is a brilliant example to teach them the difference between the two, and the basics of budgeting.
Savings & Charity
Once again, not just kids but adults find themselves confused about these concepts. They want to save, and hence don’t give to charity, because it is obvious that both cannot happen at the same time. If you give to charity, your savings reduce. But, if as parents, you teach your kids about the goodness of being charitable, the essence of helping the needy, they will happily part with some of their savings to charitable causes. If you fail to teach them this when they are young, teenagers, they won’t realize it as adults.
Thus, to give a summary, budgeting basics always help one live a life of dignity when they grow old. Because as kids they learn to value money, earning it rightfully, saving, it, being charitable, and saving it, they grow up to be good human beings. Explaining these with small goals, examples, stories, and activities is the job of parents, at home. And, ten schooling and other platforms come in.