In this rapidly changing world, where lifestyles and commodities are getting costlier by the minute. It is essential for us to educate and teach children the value of saving and managing money as it would prove to be beneficial to them in the long run.
Why is teaching financial skills important?
Educating our children about money management plays a crucial role in their personal development. It teaches them the value of money while giving them first-hand experience on how money has to be earned, spent and saved.
When is the right time to talk about money to your children?
Financial experts have stated that there is no such thing as a right age to teach students about financial literacy. It is best advised that parents and teachers begin teaching their kids about money management as soon as they can.
Beth Kobliner, the author of the New York best seller ‘Get a Financial Life’ says that children as old as three years are able to grasp financial concepts while relating to activities involving money such as buying and spending. A report submitted by researchers at the University of Cambridge reveals that kids form money habits by the age of 7. In another book called ‘Rich Dad, Poor Dad’ author Robert T Klyosaki talks about his experience of receiving money management education at the age of 9 which later made him one of the richest men Hawaii.
What type of money concepts to teach children of different ages?
As important as it is to teach students and children about money matters, it is also imperative that certain financial matters are taught at a young age, following which certain financial concepts can be taught at different levels to get them to fully understand the nature and importance of saving.
For children of ages 5 to 9-
A trip to an ATM or a bank
A visit to the supermarket
Introduce the concept of a piggy bank
Coin value and identification game
For children of ages 9 to 12-
Making a pocket budget with savings and expenses
Teaching them the method of earning money through household exercises such as washing the car or cleaning their room, etc.
Showing them how much household things cost through bills
Teaching them the importance of a savings account and its functions
For children between 12 to 16 years-
Teaching them how credit cards work
Introducing them the concept of online shopping
Defining and explaining to them the concept of investing, costing, etc
Explaining the role of advertising and its role in affecting spending
What are the best resources for teaching children about money matters and finance?
Given below are some of the best online and offline resources with links that can be used to teach students the value of money -
Get a Financial Life by Beth Kobliner
Rich Dad Poor Dad by Robert T Kiyosaki
Personal Finance for Dummies by Eric Tyson