Inculcating financial awareness in children begins at home. There is a saying that “Charity begins at home”, you grow up to have habits that you inherit from your parents. It is important to develop financial awareness for children and from a very early age. Schools can be a very good place to learn how to handle cash but very few schools give lessons on financial management for children. It is said that when you are young, you tend to imbibe what you see. If you are amidst people who have a habit of saving, you will learn to save too.
- Start by giving pocket money to your children. And ask them to give you an account of how they spend it. Not only will they give you an account but ask them to write down what they have spent. And add up individual expenses and jot down the total.
- There is another way financial awareness for children can be developed. You give them some pocket money and ask them to return the amount they save. Meanwhile, you open a savings account for them. Make them understand that if they can save some money from the pocket money and hand it over to you, you will show them an interesting thing. Keep them in suspense. When you will have accumulated a fair amount, show them the balance of their savings account. This should hopefully thrill them. Make them understand that they used to give you a small amount but when you save the amount is much more.
- If a household in your neighborhood has filed bankruptcy or is facing foreclosure, you can make your children understand that since they did not use their money properly, people will be taking their home away. This is bound to have an impact on children.
In this way, financial awareness for children can be developed. It is important to teach them financial management while they are young and receptive.
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