Teach Children Set Financial Early

Although still modest level of understanding, children can know, skillfully manage money if the manner of his parents. The key is to teach as early as possible, provide a simple knowledge, and give concrete examples.

A site that a lot of peeling about financial management for children, TheMint.org mentioned, seven out of ten children aged 17 years admitted that the parents who most influenced them in managing finances.

Financial planner Paul Lermitte in his book 'To Manage Money Smart Kids', say, when parents teach their children to save, how to use the money, and invested with full responsibility, indirectly, their parents have prepared them to live a successful and productive in a later date.

However, make sure that parents remember this:

Children are unique individuals. Therefore, a method of learning can not be successfully applied to all children.

Parents are in control. Therefore, according to Janet Bodnar, author of Kiplinger Dollars & Sense For Kids' parents do not get caught up in loving her children through the material. "In a family must have one adult, and the parents who should control it," he said.

Money Smart Kids Key Set

The key factor in making the child is motivated to manage finances is to make money becomes the important things in life. No need to reminisce about the many ways parents manage finances while still a teenager. Immediately, in essence, money.

Give real examples in life and be an example for them in dealing with financial problems.

1. Teach children the difference between needs and wants. Explain to them that some things are expensive to buy it once and we must save it first. This will allow them to refrain from the desire to shop.
2. Let them make decisions about money as early as possible.Teach them how to manage an allowance, but do not force them. Give the understanding that by saving they can get valuable items at a later date
3. Provide motivation for saving.Tell the children that by saving money in the bank, they will be able to get more benefits than just saving money. Moreover, if the type of savings chosen especially for children, which certainly gives a lot of gifts or other perks. Let the eldest 'compete' in this case with younger siblings, so they'll be more motivated to find ways to supplement their income for savings in addition to the allowance, such as helping the mother or father.
4. Make sure children know the relationship between employment, wages and taxes.Let your children know their parents how many hours are spent working with the amount of money to be spent. Do not forget, give them the understanding that the state is entitled to take part of their salary as tax.
5. Never tired of teaching children about the credit system.Give the child an understanding of credit cards and how to use it. One thing that is not taught is the importance of paying bills each month. Before the child has a credit card, see first how the money arrangements with debit cards.
6. If old enough, their motivation to gain work experience. Let your child feel like working, receiving a salary, and get tax breaks so they can appreciate the money.
7. Teach your children about investing. In this case, the real experience is the best teacher. Parents can be the most obvious example for them. From this experience, children can learn about the process, gain, loss, risk factors, and so forth.