Coaching Children Manage Financial Habits
Coaching Children Manage Financial Habits
Many adults who do not know how to manage finances properly, because it is not taught since childhood. Most parents arrange her finances, so that the child does not need to know about financial needs. Whereas almost all aspects of life related to finance.
If you want your child to be financially mature as adults, you have to start letting your child to handle his own finances. All you need to do to teach and guide the child, in order to continue to implement good financial management. On this occasion I will discuss some of the financial habits that should be taught to your child.
- Creating a Simple Budget (Budgeting)
Budgeting is the core of financial management. Most people experience financial difficulties because they do not master budgeting. How to teach budgeting to children?
Needs of children more modest when compared with those dewasa.Karena that we teach budgeting is also much simpler, so it’s easier to digest by the child. Suppose your child usually get pocket money Rp. 10.000, – per day. Well, to teach your child budgeting, you need to give pocket money during the period directly to your child. Start with a small period, eg weekly. A week consists of 7 days, so you either give Rp. 70.000, – to your child.
Of course, your child needs to be guided through the utilization of such allowance. Moreover, spending money that you provide directly in large quantities. Give the understanding that the money you give is for one week. Teach your child simple budgeting, that the child should allocate spending as much as Rp. 10.000, – per day. When the day his son was spending more than Rp. 10.000, -, then he should stop spending until the next day.
You also need to explain the punishment if the child spent the prior week pocket money. Provide an explanation that if the money was given out before a week, then you will not provide additional money. As a result of the child in the week was not able to shop. Emphasize that the child should be disciplined in the shop, so that the pocket money is spent not more than Rp. 10.000, – per day.
- Saving Habits to Get Something
If your child asks you to buy something that is quite expensive, you better deliver information to your child that the goods are quite expensive so that the children need to save before you can buy it.
The habit of saving to get something very good for the financial education of the child, because at the time of saving the child must resist the urge to berbelanjanya for some greater purpose.
Let’s say your child asks you to buy a bike with a price of Rp 500.000, -. You give an explanation to your child that the price of Rp. 500.000, – it was quite expensive, so you can not directly buy the bike. Then you can teach your child that when the child is willing to deposit allowance of Rp. 50.000, – per month, the child can buy a bike in 10 months.
Ask your child to save for the purpose allowance to buy a bike. Your role here is to give the sense that the child should resist the temptation berbelanjanya, making shopping less than usual in order to save and buy a bicycle.
After the boy struggling to save for 10 months, there may be several factors that cause the child can not buy the bike you want. Suppose the price of his bike ride, or partially cut off by the child’s savings bank administration fee. In this case, you better help your child in a way that does not bear the fees collected by your child. Let’s just say this is a prize / reward for their hard work in saving the child for 10 months.
Possibly Related Articles:
Posted in Personal Finance | 
Tags: Allowance (money), Budget, Child, Finance, Home, Parent, Saving, Savings account