Teaching a child Financial Management practically

 

Money Management by Children

When I was a six-year-old , my father used to give me a one dollar note in a week. He would then check with me casually what I did with the money. I did not understand that he was actually teaching me how to manage money. The next step came when he bought me a piggy bank and started giving me coins. He would come daily after office and whatever was change in form of coins he used to give me. Again he was teaching me to manage money, and also how to save money. Taking cue from the way he taught me to manage money, this post will contain some basic and easy things you can try instantly.

Today I will discuss various techniques to make your child learn some basic financial management skills just like my father taught me.

  • Pocket Money – As soon as your child is big enough, provide him some cash as pocket-money to start with. Pocket money management will help him learn about managing cash. He will learn basic skills like where to keep cash and what to do with it. It will also show him how hard it is to earn the cash.
  • Opening a bank account – When he has learnt to manage cash, he also need to learn how a bank runs. The best way to learn is to open an account for your child and let him handle it. He will learn how to deposit money, withdraw money and use of debit card as well. Banks do facilitate the child to open a bank account. They are their future customers is it not?
  • Earning Money – After learning about bank, teach your child to earn money. The practical way is to make him earn money by doing holiday jobs.

So these are few tips to teach your children financial freedom. More will come next time.

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