Wednesday, 18 June 2014

Set An Example Yourself - Money Math

The way i see it,the digital child should learn to live within his means and be independent.To live and be content with what they have.They should know know that nothing comes for free and it is through sacrifice and hardwork that desires work out.I am still far from perfect here,just saying it as it is.

Are you a good example to your child?May it be socially,discipline wise and most of all
financially...Well,parents should  set a good example to their children since they are their mentors.Here are a few tips i know about ways to teach little children on how to save and invest at an early age.


Money Box
You don't want saving to feel like slavery to you little children.Kids are easily distracted by cartoons,attractive visuals or comical characters that make them happy.

a customized piggy bank/money box
 Kids favourite bit is being curious to know what is in the other side of rules,they hate being given rules and instructions to follow.By saying so,you could use a nicely decorated saving box with a design of your child's favourite cartoon.

In addition always motivate your child by telling them that you will reward them if the save more.This can be paid off through family outings/picnics,buying them a favourite cartoon to watch or buying them that new comic book at the bookstore.


 Money Charts
Help you children differentiate between wants and needs. Correct me if i am wrong please,Need basically is fundamental for a human for survival purpose. In the other hand, want can be seen as a human desire to get something additional whenever they have already satisfied their occurring needs. The human wants are unlimited. Thus the satisfaction of one want leads to another.
 
With that in mind help your child use money effectively to buy what they need and save to buy what they want.The charts come in handy since children love to draw,make them draw what they really need and cross out what they want if it is not that important.The charts also help to keep records of expenditure and saving thus you can self evaluate with your child whether they are on the right track in money saving.


Money Value
At a certain age,you should teach children the value of money and how it is gotten.They should know we work and get money,plus the money is used to pay bills first before luxury comes in.Luxury comes at an extra hard earned cost.
This is where the idea of choices comes in.The way i see it,money is everything;it could make you happy if you use it wisely and it could make you a slave if you misuse it by letting it slip from your hands. 


Allowances
The allowances given to children could be a good start to train children about taxes,bills or probably insurance.Lets say you give your child a hundred shillings as an allowance per week.You could train them to deduct a certain amount of money to save.They could deduct like forty shillings and get left with sixty shillings.

Well,it is just like saving the money in an insurance company and getting a compound interest after a period of time.Moreover the earlier a child learns to step up into responsibility the better.Taxes or bills will never fail to be there and someone has to take care of them in time failure to which they face a penalty,right?

Set An Example

Well,they say garbage in garbage out.What you as a parent does with your money infront of your children is what they pick up.Let them go with you as you do shopping and see you exchange(pay) money to get groceries or fuel.That way a child will grow knowing that we work for money and use it to get what we need (refer to money chart).
Show children also that it is good to share or give.This can be through charity or donations.Involve your child in money talks as they grow,that way they pick up the 'money discipline' from their parents.

Act the way you want your child to act when they grow up!!Be an example Yourself.


With love always...Oink! Oink! Oink!






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