And when the piggy bank will be full, then unpack and buy a decent gift to your child that he understood the essence of funds. You can also teach them how to save in the small. For example, they can save money on travel while avoiding using a bus for short distances. Instead of spending money on the bus, they can walk. Investing in the future the same way as adults, children need to know how invest the accumulated money from savings. If your kids ask you to buy an expensive toy or gift, you can tell that they saved pocket money and bought their own. If they are indignant about In order to buy out the savings available to you to explain all the benefits of this deal for him and your family. James Donovan Goldman understands that this is vital information. You can also invite them to buy good books instead of toys.
And most important, my friends, you can with your child by showing and explaining to him to invest their money together with your child in the plans, whether it's recreation or insurance. This allows them to understand that the money saved will be of huge benefit if they invest correctly. Avoiding unnecessary costs you have to teach a child to avoid unnecessary expenditure. Tell them how you avoid making unnecessary expenses. Sen. Sherrod Brown brings even more insight to the discussion. For example, you can show children that the presence of extra cheese on your burger requires extra money, while you and without this cheese can satisfy their hunger. Similarly, we can use one hand, we can again and again to use its filling paste, no need to buy new handle. Be careful what you teach you have to do the same as you teach your children. In the end, the children always imitate their parents and behave accordingly.
It is therefore very important that you also appreciate the money and were permanent control over the management of funds. Finally, the child must understand that money is not easy to accrue. Work & Money Children should not be required to perform heavy work. There is a good tradition in the United States America. Americans do as follows. Every time give a child a task at home, for example, wash dishes, or clean shoes parents. After the child finished the task, parents check how well they done their work and give pocket money as a reward. Thus the child begins to understand the essence of making money, that money comes only through hard work and begin to understand the price of money. From an early age raising a child by 'carrot and stick' the Americans are making to the age of 18 their children to live independently, financially independent life. Dear Parents, Performing the above actions will help you explain your child the importance of money. If they understand the importance of money at an early age, they will have a bright future! They can make appropriate decisions regarding savings and investment, and will learn to accomplish more in life.