The 21st-century is an era where the money is the most valued, as well as the most disvalued thing, at the same time. Most teenage children today are unaware of the fact what it takes for the money they spend to get to the table. They ignore or often oversee the blood, sweat, and tears their parents have put in to earn that money that they spend profusely. This is why, we, at Gurukul The School, believe that it is imperative to teach the young gen kids the importance of money and how smart money management can help them in the future.
We understand that money management for kids can sound a bit overboard, but in reality, it is essential. Earning money will become a part of their professional life a few years later, but learning to spend it smartly is what matters to make a difference. Even if two people earn the same amount of money, it is the way they spend it that makes them a debtor or a well-off. After all, saving is not the only way out; smart spending is the thing of today’s world for this smarter generation.
Money is Not an Easy Resource
If you ask a young child where does the money comes from, you may instantly get a reply that it pops out of an ATM. It is because these innocent minds don’t know the hard work that the parents put in to earn that money. It is hence important that right from a young age, kids are told that banks and ATMs are just a place where the money is kept safe. They need to understand that money is a finite resource, and it reduces each time we spend it.
Save and Spend
One of the best ways to teach money management to kids is to give them the money. Let your children earn money by doing small household chores. You can teach them to save their money in their own piggy bank so that they can use it when they want. Children must understand the efforts that go into earning money. If they get to understand this fact early on in life, it does them even greater good in life ahead. Besides, it also teaches them to lower their needs and what it takes to save money in the first place.
Never buy your children anything they ask for in an instant. Give it some time and let them know what delayed gratification is. They must learn to appreciate what they’ve got. Tell them you do not have the money now and will take some time to save for it. This will reinforce the idea of saving and waiting for their ‘wants’.
Curb the Impulse of Spending
Children need to learn not to spend the money as soon as they get it. The curbing impulse to buy anything in front of the eyes with cash in hand tends to make them an over spender in their later years. So, before going for shopping or to a store, create a budget for your kids and tell them what price range of toys they can choose so that they’ll plan their purchases beforehand, which is indeed a good financial habit.
Make a Wish List
Wish listing things helps children to set priorities and know what things they want and what they actually need. Needs must always go before wants. This helps children to make the most of their savings.
We, at Gurukul The School, a top ranking school in Ghaziabad, believe that teaching kids the art of smart spending is a crucial part of their holistic development. After all, it is the smart financial habits that actually benefit a lot in the later years. This is why at Gurukul, the focus has always been on empowering an independent thought process among our pupils and instill in them assertive core values and beliefs that aid their transformation into productive and responsible individuals. We put greater emphasis on value education, teaching children to widen their thoughts and wisdom for the global scenario so that they can compete efficiently and succeed in their life ahead.