Financial Literacy

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Ah, kids these days, they want to spend all their pocket money on sweets or video games or fancy toys. But, how about teaching them how to manage money so that when they grow up, they grow up as a financially-savvy, responsible adults? Financial literacy for kids is crucial, especially when the children are young. Financial literacy for kids prepares the young ones for the better future. While the professional help is available, which every parent should consider taking, parents, too, themselves can teach certain valuable things about money to their kids. Here are certain things parents can do to introduce financial literacy to their kids. Money Reserving Habit Creating money reserves is something that every kid should learn at a very early age. Teach them to reserve half of whatever money they get. In order to make the kids reserve money, buy them a piggy bank or you can also decorate a clear jar with “Money Reserves” label on it. For youths, go with them to a bank and open a savings account. Whenever the kid reserves the money, make it an occasion so as to encourage them to reserve money regularly. If you want to teach your kids the value of giving (tithing) as well, then tell them to divide their allowance into three portions – 40% should go to money reserves, 50% should go to spending, and 10% should go to a charitable institution of their choice, which you can find it together. …show more content…

Now, give them bills in exchange for coins, and explain them the value of each bill. This practice helps your children really see that the amount is increasing, and their money is growing. Seeing their money grow, encourages the kids to reserve more money

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