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TEACHING CHILDREN VALUE OF MONEY


Every teenager at some point of time likes to be independent. As parents one must allow their children certain degree of freedom. It not only allows them to make their own decisions but also it helps in transition to adolescence.

Value of Money
When one spends their own money, one often learns the value of it. When a child is taught to handle money, he will automatically find out the prices of the items for sale.


Pocket Money

It is very essential for a parent to give his child pocket money. If given rightly, it instills the concept of sensible spending. The parents should estimate approximately how much a child would require. The child can be taught, that the money is for spending things for pleasure as well as for necessities. Beware of giving too much pocket money to your child. Your child may unnecessarily spend, he may get confused of making sensible judgements about spending.

Sometimes your child may want to go to an expensive restaurant or holiday. Learn to say "No". Your child has to be taught the difference between what an be afforded and what is worthwhile. He has to learn to live within his means. Don't be overstrict, at times indulge in taking him out to a fancy restaurant. This flexibility should entirely be your decision.

Involve your child

It would be a good idea to show your child how you do budgeting. The regular household expenses, insurance expenses, car maintenance, school fees, etc., money put in bank as savings. Let your child know you've got maximum mileage out of your individual budgets. Involve your child in family budgets. Let him run the house give him a certain amount in the beginning of the month and keep record of all the expenses. Open a bank account for your child and allow him to run his bank operations like putting in a bit of money every month.

Summer Jobs

Earning is the most important step of learning the value of money. Allow your child to take up a summer job. He will realise the effort and time to earn money is much more than to spend it in a jiffy.

Don't Judge in term of money

As parents one has to instill on a child that money can make the world go round - so don't judge in terms of money. How to live like a honest good human being cannot be determined in monetary form.

 

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