Rules That You Need To Teach Your Child About Money

In most families,it is not normal to give children a planned budget nor to talk to them about issues related to money. This habit leads to the fact that most adults and teenagers are financially illiterate. Here, shawn gandhi realtor mississauga will show you how to teach your child about money.

1. Pocket money

You need to give your child a small amount of money and teach them how to use them. For example, if there is no other possibility, the child should let you bein charge of the purchase they want to make. But it would be better to give them a small sum of money which they will regularly receive.

2. Wanting to earn money

As a parent, you must work on the system of motivation with your child: to explain to them that jobs are and how they allow humans to get money and under what conditions. The most important thing is to let them know that they can receive money too as long as they are willing to perform a certain job. If they agree with you, then start giving them some small tasks to do for you and once they complete them, reward them with a small amount of money. Then they can easily start making their own “financial” plans.

3. The amount of money

Pocket money should not cover all of their needs. The child needs to be motivated to do something even more. For example, your child may be offered the opportunity to earn money so they will do something for the family. Ask them to throw the trash from the house.

4. Planning

In the next stage the child should learn to create plans. Buy them a notebook in which they will be able to write all the finances they receive from you. It is best to explain to him that that’s exactly what all adults do. Make sure you monitor your child at first and show them if there is something they do not know.

5. Talk About Money

Feel free to talk to your child about minor issues with money. They need to know the real meaning of money.

6.Sixth Family Budget

From the tenth year of the child should be gradually involved in planning the family budget. He needs to show that revenues and expenditures has family and offer to work together with you calculating the budget, but also to explain why you do not receive more money. A child needs to demonstrate what happens when you obtain a toy that is not in the plan. He needs to show that for some thing first need to.

7 .The work on the mistakes

If a child constantly saving and planning financial goals, then we know that something is learned. For example, if you want to obtain a set of tablets and we see that in a few months the child sted, and previously has already managed to achieve several of these objectives, we can conclude that when it begins to form a habit. But even in that case we should not forget its financial worries. Once in a few months with the child to talk about how to stand with the money. If it something not succeed, we should look at what mistakes he says. Success can be considered only a situation in which the child is not only successfully managed their money, but begins to realize that something can contribute to the family.

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