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| Money Management for Children - Made Easy |
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| Written by James Martin |
| Sunday, 01 November 2009 09:27 |
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Children can grasp good money management skills at early age, if it is taught in the right way. The sooner they learn the ropes of managing their money, the faster they will learn to use it wisely. The earliest age to do is between 7 and 10, because that is when they will start to learn basic money matters in school too. The first step is to allocate a meager amount which needs to be given to the child after one week. Assign suitable odd jobs around the house which they can complete in a short period. Once the assigned job has been completed pay them their allowance in full. This way, the child realizes the value of his/her work and will want to earn more. The second step is to show the child to spend his money frugally. The salary must be allocated to three categories - saving, charity and spending. Apportion the money as 40-10-50 or 50-10-40, whichever is suitable. Now the child learns the basics of: spending the money on favorite things, giving away a part of it to charity and finally, to save a portion of it for themselves. These simple lessons when learnt the hard way, will stay with them forever. Since savings is primary here, give them a box or jar (a transparent one) where they can see how their savings increases as they work for it. Visualizing the way their savings grow will have a positive effect on the child; similar to, when they see sprouts from the seeds they've sown with their tiny hands. Values like humbleness and simple living can be taught through charity. Take children to some old-age home or orphanage so they will realize how blessed they are. Simple lessons on savings will teach them to be more responsible with their money and prevent them from falling into debt traps in the future. Now that the teachings are finally over, let them enjoy their hard earned money. About the Author: As a parent, use budget planning software offered by personal budget planning sites which you could demonstrate to your kid as he grows bigger. This way, you become an ideal parent for your child, giving him financial security at all times. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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