Lesson 2: Keep an Account:

Once your children are able to do their daily routine by themselves, give them monthly pocket money and ask them to jot down all their expenditures without fail, to keep a record. As they practice this for two to three months, they will understand the degree of their expenses and will learn to manage them according to their needs.

This exercise will turn into a habit as they grow older.

Lesson 3: Save More:

As kids, they are excited about buying new things. So, if they express their desire to purchase a favorite toy or a dress, gently ask them to save enough money to get that.

Some children are excited about the very idea of having a big kitty bank full of money, if that is the case with your children teach, encourage them to do so.

Lesson 4: The Need of Investment:

From the experience of buying themselves favorite things, children will like the idea of saving money and investing it in something very dear to them. One must demonstrate it to the children to make right investments, in order to teach them the importance of making valuable investments.

Asking your children to apply their personal savings account in their math problems is another fun way of teaching them about interest rates and investments.

Lesson 5: Borrowing and Lending

A child needs to know that people do not lend money without reason. They, as adults must be ready to face the big bad world. They must know that borrowing and lending is part of daily life as we grow up and that there is nothing to be ashamed of.

When a child demands for more money than the regular pocket money, give them money only on the condition that they would return it to you with a small interest. This will lead them to gradually realize that cash is not as liquid as it seems to be.

Also Read: Sensex Down 136 Points; Capital Goods Stocks Tank