Q. Why it is very important to inculcate sound money management in the children?

A. In the question you will get the answer. As we try to do our best to establish good habits in the youth in the same way we should not forget to aware them about finance. We should aware them how they will manage their personal financial problems. Many children grow to adult without knowing how to handle the money. Due to lack of knowledge they fail in such a way which is indescribable.

Q. What are the things parents can do to teach their children about money?

A. There are 4 things parents can do

Start your training early:

You have to recall the old proverb. As the twig is bent, so grows the tree. As soon as your children starts develop awareness, they are entitled to get all the guidance and information on the reality of the financial world.

Mean what you say:

Your must show financial soundness. Whether you believe it or not your children will try to do what you will say and what you do. Because children follow their parents and this is the general rule.

Avoid spontaneous gift-giving:

Generosity is a good quality but some time it may affect children. One of the good qualities that build financial self confidence is an ability to prepare and stick to a budget. Do not give extra money to the children to misuse the money.

Don’t dictate your child’s discretionary spending:

Better not restrict your child on prodigal spending. If you want your child to know about money he should understand the value of it. The parents may give advice to their child on sensible spending but better not dictate how to spend their earnings. They should make the decision on their own.

Q. Are there any other way we can teach them how to handle money?

A. Yes there are two ways except within the family and those two ways are classroom and the television. But in the classroom you will find that the teacher is also confused with the finance world. So it is obvious that the children will not get much guidance from the class teachers. In the American private school system you will find that there is hardly any time is devoted for managing personal finance. The second possibility is the television. But most of the time you will see that children are copying the celebrities, listening to Hip-Hop music etc. But if they can watch the educational program or where they are being taught personal finance management then that will be very helpful for them.

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