FINANCIAL LITERACY: 5 TIPS TO TRAIN YOUR CHILD RIGHT

The financial aspects of life are extremely important and must be taught to children from a very young age. For an improved financial condition, it is necessary to teach them how to handle money. In every aspect of life, be it school or home- students must be taught to deal with all types of financial situations in an efficient way so that the long-term result is fruitful.

This huge responsibility is mostly given to parents and teachers. The mentors, through their experiences and situation, must try level best to ensure that financial literacy is there in every child. The fees of boarding school in India believe that financial literacy is very much a part of the overall development of the children and various programs are conducted to educate the students properly. It must also be mentioned here that every child faces a different financial situation at home. Therefore, the programs need to be conducted in such a way that it incorporates their individual experiences and how to handle them.

Here are five tips to train your child right about various financial aspects and how to handle such:

• Through everyday experience– Every day we encounter certain situations that can be put to perfect use for infusing a sense of financial literacy within the children. There are several age-appropriate ways which helps to set an example of how daily financial matters are handled efficiently. For instance, educating them about tax by showing the receipts from various shops is an important task. Not only this, but one must also learn to differentiate between “things you want” and “things you need” to eradicate luxury expenses from a life that can lead to unstable financial conditions in the future.
• Importance of allowance– The allowance system is quite helpful to create a healthy balance in the financial aspects of life. Every child must be allotted a certain sum of money to spend within a specific period. For that, the parents must set a goal and only provide the allowance if the goals are met. This is a two-fold beneficial situation where the children will value money and learn to spend it correctly within a specific time.
• Preparing budgets– From small children to adults-budgets are prepared to help everyone in any situation where expenditures are mandatory. Smart budgeting is a thing that all children must be taught. It involves spending a specific sum (budget) that is allotted to carry out all the necessary expenditures. This includes cost-effective techniques, basic money management skills and avoiding unnecessary luxury spending. Reckless spending without preparing budget may lead to exhaustion of money at an early stage and the concerned people may have to incur a huge amount of debts.
• Value of money during special occasions– While there are a lot of ways to teach the value of money to children, the top educational institutions in the list of boarding school in India states that special occasions can be used best for this purpose. While you are at a restaurant or outside for shopping with your children, it is important for them to develop a cost-conscious mindset. The children must be taught to compare the prices of the food items or clothes before they decide to order or buy. The key is to teach them to choose something that is suitable for their current financial scenario.
• Importance of saving– The future is unpredictable and relentless spending is something to be avoided at all costs. One must take care of all the expenditures properly and still save money for the future and handling emergency situations in a better way. As children, they can have piggy banks where the money is kept safe and cannot be taken out. It can be broken only in case of an emergency or after reaching a certain target. Saving also has a direct relation to smart spending. Saving is a habit that must be installed in children to develop a sense of value and help them handle financial matters efficiently.

For a stable future with stability, the above tips are quite helpful to ensure financial literacy in every child at a young age.

Swarnprastha Public School is the best boarding school in India that ensures the overall development of the child’s personality. With their futuristic teaching techniques, the students will get an all-encompassing idea about life and its various aspects. It not only focusses on academics but also takes into consideration the extra-curricular activities and the holistic development of the child. The expert teaching faculty and infrastructural facilities are also noteworthy aspects of the institution.

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Created on Mar 2nd 2020 07:21. Viewed 304 times.

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