The personality of a human is formed since childhood, the learnings as a child form a major part of their personality as a grown-up. In a lifetime we come across many people some have spending habits other have a habit of saving. These habits are not formed in a day. As a parent, we want best for our children so making them learn money habits so that they can save more and keep their spending’s in check is our responsibility.
Here via this blog, we are trying to give you some tips to inculcate good money habits in your child –
- Give them a budget (maybe for a week or month) – Fix an amount may be monthly or weekly and tell them to bind by it and keep their expenses in check. Later instead of getting them everything they demand teach them to earn it. Give them anything above their allowance in case they do some household chores or complete the work given by you. This way you will each them the value of money.
- Make them understand the difference between needs and wants – We all were kids and used to demand a lot of things from our parents disregarding the fact that we needed it or not. It is natural, but is it required to fulfill whatever they demand? Absolutely not. When a child demands something to try to explain to them do, they really need that stuff or do they have some other alternatives that they already own. This may develop a habit in them where they always will differentiate between needs and want and accordingly cultivate a good money habit.
- Gift them a piggy bank and cultivate saving habits in your child – Tell them to save for a goal by saving from the pocket money or saving the money that they receive as a gift from their relatives. Let us assume that your daughter wants a doll whose price is 500 rupees, so to get that doll to encourage your child to save money. This way they will learn the art of saving.
- Track their savings and spending – Keep some track about their spending and encourage them to write their expenses so that they can keep a track and in case they want to save they can have an idea from where they can save.
- Include your child in conversations related to money – Don’t keep them away from financial conversations considering them a child. Involve them so that they also know about budgeting, saving, and investment. This will help them in forming a perspective about financial decisions.
- Be the role model – You are going to be the first teacher of your child so always set a good example when it comes to spending or saving habits.
Cultivate the good habit of spending and saving you money in your child from a tender age so it becomes a part of their growing up and thus becomes a habit.
You can also contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).