How To Teach Kids About Money: 5 Steps


BANGALORE: It looks like a challenging task when it comes to teaching your children about the value of money and work, it can seem like a challenging task. Money gives young and old people decision-making opportunities. Educating, motivating, and empowering children to become regular savers and investors will enable them to keep more of the money they earn and do more with the money they spend. Everyday spending decisions can have a far more negative impact on children's financial futures than, any investment decisions they may ever make.

Let’s have a look at some of the tips on teaching your kids to earn money and know its value:

1. Explain them the difference between savings and spending

Try to explain and demonstrate to your children the concept of earning interest income on savings. Think about paying interest on money that children save at home; children can help calculate the interest and see how fast money accumulates through the power of compound interest. Later on, they also will realize that the quickest way to a good credit rating is a history of regular, successful savings. Some parents even offer to match what children save on their own.