Money Smart Kids

Good parenting comes with a great deal of responsibility.Teaching kids about money isn't always easy,but it is the duty of every parent to raise financially-fit kids.
Talking about money to your children and teaching them how to save and spend wisely is the key to building a healthy relationship with money.
A child who has been taught to make wise money decisions can also handle financial responsibilities with confidence.
Here are a few kid-friendly guidelines:

1 Be a good role model
Before talking to you kid about money you must make sure that you talk about money with yourself.Your approach in handling financial matters will help you educate your child about money.
Positive money practices like responsible spending and saving will also help your child understand money matters better.

2 Be patient with your kid

If your kid makes wrong buying decisions or overspends,do not argue or scold him.Instead make your conversation positive and listen to him.

3 Encourage saving
Whenever your kid gets an allowance or gift encourage him to put a part of the money in a piggy bank.You can also open a savings account at a bank and take the child to deposit the money there.

4 Give a modest allowance
Whenever your child helps you or other members of the family with some work reward him with allowance.Do keep in mind that the money should be a modest amount so that your child does not fall into harsh spending habits.

5 Help your kid find work
You can help your child find a part time job locally.Help him prepare for the application process and the interview.
For younger kids,instead of handing over the allowance you can ask them to help you with some chores.

6 Invest in stocks
This is a very good way to make money and create wealth too.Open a custodial account for your kid and teach him how to pick good stocks and invest in them.He can invest a part of his allowance in stocks and see his money grow with time.

7 Plan family money nights
Play board game like monopoly and discuss about stocks and other investment options.

8 Involve your kid in making family budget
Ask him to make a shopping list and explain what to include and why you need to avoid the unnecessary items.This will help him understand how a budget works and will also help him make disciplined financial decisions in future.

9 Giving back
This is a very important lesson which every kid must be taught.Encourage him to donate a part of his allowance to the poor and needy.Explain why contributing money to the homeless or child charity is more important than buying expensive gadgets.
Such contributions also teach social responsibility to kids.

Once your kid learns the virtues of saving,he can spend and invest wisely which will ultimately help him create wealth.