Educating Children For Financial Matters
Financial literacy may give freedom to the children to make smart decisions
The importance of financial education cannot be denied. Those of us who lack financial literacy often end up with empty pockets at the end of the month, with no savings for any emergency. Such a life is very difficult, not because of a low income or lack of money for emergencies, but because they have not been trained financially. Even if a financially disabled person earns thousands of dollars, they will still not be able to live properly.
Therefore, it is important for parents to teach their children about budgeting as soon as they grow up and for them to calculate their monthly expenses themselves. This will give the child practice from the beginning of understanding how much money they have and how they should spend it for the month. Out of this amount, they should set aside money for social activities with their friends.
Take part in this activity with your children.
Reserve the monthly money for the children according to their monthly expenses and for enjoying with friends. Ask them to organize their monthly expenses according to the format below and help them with this activity.
Total Amount:
School Fees:
Stationary:
Travel:
Pocket expenses:
Miscellaneous:
Saving:
Teach your children from the start that a portion of whatever they earn should be set aside for unexpected events in life and that this money should not be spent on anything else. This way, they will grow up with this mindset, and it can help to alleviate many of the hardships they may face in life.
Do you think a child preparing a monthly budget can ignore the activity when they start life? I don’t think so. I believe if children are trained in their childhood for these matters, they will follow these rules and they will have a better life than those who are not aware of these facts.
