5 Smart tips to teach children to manage finances from an early age

Children will learn everything the first time from their parents. One of the things that must be taught from an early age is financial problems. Not only introducing money to children, you also need to teach children how to manage money properly, where money comes from and to save money.

Here are some ways to teach children to manage and manage finances from an early age.

Tips to teach children to manage finances

1. Tell me where the money comes from

Ask your child where the money comes from, maybe he will answer from the bank, mom and dad, the president, or the rich.

Your child doesn't fully understand that your family buys or gets something by working. So that, you can tell your little one there are many jobs that can generate money. Emphasize him that he can't get free money without working.

As a parent, you can train him to recognize "work" and make money by asking him to help out with light chores. For example, helping you make cookies or chocolates and then selling them.

That way, your little one will understand where money comes from and have to do a job first if you want to get it.

2. Create a buying and selling game

Invite children to play buying and selling like in a shop or market. Attach price tags to household items, give your little one some shopping money, and pretend to shop at this engineering shop.

Your child can make a list of the things he wants to buy with the money he has. Choose the items that are sold and calculate the amount spent.

To practice his numeracy skills, give him the opportunity to become a cashier. When he is getting smart in terms of managing expenses, you can give your little one the opportunity to shop at the actual store.

3. Make a special savings

Setting aside money for children's needs is a must. The money you put aside for your child can be turned into savings for your child.

When the savings for your child have started to accumulate, you can take your little one to the bank. Tell him the amount of his current savings, ask if he wants to take it all or partially saved for his needs when he grows up.

Give reasons why he needs to keep his savings, or needs to be withdrawn.

4. Get your little one used to setting aside the money

Well, the next step is to get your little one into the habit of saving. You can start by giving him a cute piggy bank and asking your little one to set aside his allowance.

Remind your little one every day to save money in the piggy bank. When it is full or a lot, you can give your little onereward or a gift because he was able to save money.

You can buy his favorite item which is of course useful from the savings that have been accumulated. That way, your little one will get the benefit of saving from childhood.

5. Recommend what are called needs and wants

Your child may often ask for new toys or bicycles, or other things that they want. Recommend him which is what is called a need to buy and which is a want.

You can tell him that a need is something he must have in order to survive, such as food, water, and shelter. Explain also that desire is something he wants to have.