Teaching Children about money is most important

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In real Life child is exposed to money ever since s/he is born.

S/he observes their parents taking out wallet and making payment for vendor, milkman, newspaper boy....and then after money being given to purchase small candy, toy, comics etc.

Few things which we can do with our children -

1)   Concept of nurturing wealth -

We can made s/he sow seeds in a pot. And inspire them to water the plant regularly. Over a time nurtured seed converted into plant.  And slowly we can increase the plants.

2)   Inflow out flow concept -

We can give s/he a chocolate bank like piggy bank. Inspire  them to collect chocolate into that and eat it twice a week.....can fixed a day .(Wednesday & Sunday) .Deposit of chocolate increase the number & eating chocolate reduces the number that helps them to learn inflow outflow concept.

3)   Concept of Bank & setting goals -

Give children two piggy banks -

First piggy Bank - Purchase piggy bank whose shape is like Bus. Whenever elders of the family give them money on various occasion, parents should inspire them to put money into Bus piggy & can tell them the story of Bus going to Bank.

Second piggy Bank - This you can purchase shape of transparent bottle. Beside transparent bottle put a picture of Toy which kids want to purchase from that saving.

One piggy bank teaches them long term saving and second piggy bank teaches achieving short term goals.

4)   Delay gratification - On every month on their birthday date make habit of purchase the gift of their choice. But it is with condition of no buying throughout the month. And in case S/he wants larger gift then S/he has to miss gifts for 1 to 2 months.

5)   Budget learning - Kids learn from parents. If they observe you to write down your expenses they also demand small diary to write down their expenses. If you as a parent aren`t willing to do family budget your child won`t develop the habit.

In reality there are four aspects of Money ......Income, Expenses, Asset (Investments), Liabilities (Borrowings) Our children are already expose to spending power ......slowly give them the power  of other 3 aspects of money.