4. Show them how to make a budget: Explain them that maintaining a budget is not a huge or complicated thing to do. You can start by showing them your monthly budget plans and show how much you spend and save each month.  Make the learning simple and easy, so that they don’t grow up thinking that budgets are very hard and tedious to maintain. Once they get into the habit now, it’ll pay off huge when they grow up.

Teaching your kids about budgeting is an important thing. You can start by giving them a combination of both the notes and coin, from which they will learn different sums of money and they might start putting some coins in their piggy banks as saving, show them the household bills and bank statements, send them to grocery shops to buy certain items and tell them to save the leftover money, finally give them some pocket money and tell them how much to spend and save.

5. Pay them for the work they do: Being kids they probably don’t have much of household work and allowances. However, you can start assigning them small household jobs and pay them for that like putting their plastic plates in the sink or picking up their toys. It might sound odd but this a good step towards teaching your kid about money.

Some parents are against giving allowances, but if you are open to it, then it can be a great way to teach kids about money. Children will learn the value of money very quickly if they learn to work for it, and few small household jobs are the best way to teach them that value.

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