When is The Right Time to Have The 'Money' Talk With Your Kids?

When is The Right Time to Have The 'Money' Talk With Your Kids?

Explaining kids the importance of finance can be tricky. Here's what you need to do!
When is The Right Time to Have The 'Money' Talk With Your Kids?

Beautiful Money By Leena Parwani 

Money is important and it is vital for you to teach your kids about it as early on in life as possible. There are different ways in which children of different ages perceive money, but if you start explaining the financial concepts early, your child will definitely stand to benefit.

You can start with handing a piggybank to a toddler or you could open a savings bank account for a teenager. You just need to identify your child’s ability to grasp the idea and proceed accordingly.

Talking about money to a 6-year-old

When your child is a little older, introduce him to the concept of affordability. Explain to him that it costs money to buy something and we can't have everything we want. A good idea would be to take him to a toy store and ask him to choose just one toy. He may want more than one, but tell him there is a limited amount of money that can buy just one toy. This exercise will teach your young child about the importance of affordability and value.  

Talking about money to a 10-year-old

By the time your child becomes 10, he is old enough to handle small amounts of cash by himself. So start giving him allowances each month and explain the idea of budgeting. Tell him that this is all the money he will get and he has to separate the amount in parts for all that he needs. If he buys lunch from school every Friday, ask him to keep a sum aside for it, if he buys a new toy each month he must keep another sum away for that, and so on.

Talking about money to a teenager

A teenager can understand more complex concepts about money. It would therefore be a good idea for you to introduce the banking system to your teenager. Under your watch, he can have his own bank account, cheque book and ATM card. The bank account will make him understand the financial matters more clearly and inculcate a great amount of financial discipline in him.