Encourage personal finances to children

For many people, personal finance seems to be a foreign concept or serious effort that sounds too complicated for them. Diluated by the task of managing their finances it seems to be an effect of being intimidated by money.

To encourage a healthy attitude towards money and manage your own finances, parents must teach personal financial concepts. It doesn’t matter if they parents themselves have trouble with themselves. By teaching their children how, they can actually be motivated to manage their own finances better.

A person’s attitude towards personal finance will have a profound effect on the quality of life that someone will have when he grows older. This is why it is never too early to teach it to children.

Parents can start with simple things like explaining to pre-school students why they will not buy the toys or something that children want them to buy even if they can. The concept of income and budgeting can be explained in terms of simplified so that children can understand.

When children begin to get their pocket money, they have actively practiced their own personal finances. This can be started with a simple task as the calculation of their daily expenses to see where their money goes.

Better yet, children can start making a budget even before they spend their pocket money. To start, they can state the percentage of their benefits they want to complete and put them directly into their savings. The rest of their money they can spend because they want food, treat, or objects for school.

Finally, to give children a sense of achievement while showing how serious savings, parents and children can go to the bank and open a savings account. For a child, this can be an extraordinary experience. Go to the “Adult” place, get a savings account, and see his name on the bank document will give him a feeling of achieving something. All of this will motivate him more to maintain the habits he learned about personal finance.

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