Teaching about finance to children from an early age is one of the right actions. At primary school age is the most appropriate time to teach children about how to manage finances with the aim of fostering a sense of responsibility for children in terms of managing and using money and children will avoid the habit of wasteful behavior and children will grow more organized in terms of using money . In this case the main key that you must instill in your child is the concept of appreciating money.
Tips for Teaching Children to Manage Finance
1) Introducing the concept of money to children
The first step you must do is to introduce the concept of money to children. When children have entered primary school and can count then introduce them to the value of money starting from small fractions. Give understanding and information to children about money and the concept of money. Introducing money to children indirectly can be a medium for learning to count for children.
2) Give pocket money to children
The next way to teach children in terms of managing finances is to provide pocket money. This step is useful to teach children about how to manage finances well. Give understanding to children to use the money according to their needs and not waste it. You also have to limit and be consistent in giving money to children. That way children will be more careful in using finance because they will realize that everyone has limited money.
3) Teach saving children
Give an explanation to the child about how to manage finances by saving. Besides that you also have to give understanding to children about the benefits of saving. Teach children to set aside a portion of their pocket money for future needs. Do it gradually and patiently, don’t despair.
4) Teach the concept of “prioritizing needs rather than desires” in children
When the child has been given the trust to hold his own pocket money, you must teach the child about the concept of prioritizing needs rather than desires. Give understanding to children in order to buy something in accordance with the needs not for mere interest. This concept will be useful for children to grow up. Children will grow up with the ability to manage every income they receive.
5) Invite children to shop
This method is considered more effective in terms of providing examples of managing money. In addition, inviting children to shop is one way to teach the concept of prioritizing needs rather than desires. Direct practice like this will make children easier to learn and record.
6) Teach the habit of sharing
Complete the lesson introducing how to manage finances by teaching children to share. Teach children to set aside a portion of pocket money to help people who are not able and give understanding to children that not everyone has money. That way the child will not waste money and will foster the nature of sharing with others.