How to TEACH GOOD FINANCIAL HABITS TO YOUR CHILD

Good financial habits!
What habits?
Childhood is the most exciting play and learn period in a normal human beings life.
Money is fascinating and all of us, including your sweet, beautiful and adoring child, would love to have some, now and in adulthood.
The destiny of your Childs financial success is in your hands as a parent. Children who learn good financial habits at childhood, from their parents, are most likely to become great financial planners in adulthood.
GOOD FINANCIAL HABITS can be defined as well established and responsible behavior with money available to a child, for his or her wants. Play the game of earning, saving and spending money with your beloved child. Make it fun for both of you.

Difficulty: Easy

Instructions

Things You'll Need:

• a) Mathematical toys designed to teach about money b) Real money c) An exercise book d) A pen e) A home bank f) A bank savings Account

1. Teach your children the importance of earning money
   a) You can pay them for doing planned household chores under your supervision.
   b) Pay for your child's needs and only some of his/her wants. The rest they can save for.
   c) Purchase a home bank for your child to start saving.
   d) Let your child learn through earning and saving, how money grows, as the savings accumulate.

2. Teach your children financial responsibility
   a) Give your children responsibility for at least a portion of their expenditure
   b) Let them learn from their own financial exploits
   c) Make your children junior stakeholders in family finances

3. Teach your children financial budgeting
   a) Ask your children to write simple budgets before an expenditure takes place.
   b) Do a few budget with them to help them understand how it is done.
   c) Let the budget show everything they spend their money on so they can see where it goes.
   d) Use their budgets to teach what money is for
   e) Give rewards for good budgeting in form of cash bonuses

4. Explain priorities and how people differ due to priorities they follow.
   a.) Have a reward system for adopting good financial practice.
   b.) Occasionally, allow your children to use their savings to buy what they want
   c.) Buy toys that are designed to teach children- about money.

5. Teach your children how to manage money
   a) Allow your children access to money in a controlled manner
   b) Let them make decisions on how they prefer to use their money
   c) Use their decisions to guide them into good money management practice
   d) Outgrowing the home bank means opening a bank savings account, do it for your child using their home bank savings

Tips & Warnings

• a) Teach your child the difference between what they need and what they want. b) Let your child buy things on their own with the money they earned around the house. c) Always do supervise their financial exploits to offer guidance where necessary.
• a) Don't let your child grow up without any understanding of financial management. b) Never bribe your children with money to induce them to do something for you or themselves. SOURCE This article is brought to you by wisdomnet.. Wisdom nest is a free news letter from EARN CASH EBUSINESS SCHOOL. Visit http://:www.earncashblogsportcom.blogsport.com for more. Best wishes, Steve.

[Thims]

on 12/9/2008 Great advice. A lesson which needs to be instilled in ever child.