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Money lessons to kid
“Children are like wet cement. Whatever falls on them makes an impression” ~ Dr. Haim Ginott
An
early action to teach your kid about money and savings are a good idea
to give better money management ideas when they grow. Using simple
methods depends on there age, you can easily bring them getting good
understanding on money and can grow a habit of savings. Below are some
practical methods a parent can use to teach there kid about money and
savings. Have a look:
Money lessons to kid
Age group 1 to 7 – Give her a piggy bank and let her collect and deposit coins to that box. Regularly give coins to your kid for her piggy bank. This approach build a habit of small savings in the early ages.
When the piggy bank is full, open a savings bank account in parents name and deposit the amount to that account. Small drops can form a sea in the future.
Someone in my place starts this habit at the age of 2 and still he following at his present age of 43. The account his father opens for him still alive with enormous amount from his small deposits for long term and now he planned to teach this habit to his daughter and present this account to her.
Age group 7 to 10 – Give her awareness about savings bank account, how adding and removing money from savings accounts, how the money growing in it with interests etc… teaching her about interest calculations will do magic at this stage.
Take her to bank with you and let her learn how dealings are happening there. Give ideas to know more about bank transactions.
Age group 10 to 15 – Start a recurring deposit. Instruct to add a small fixed amount in each month. She can easily collect this amount from her pocket money and gifts. You can also give small amounts as gifts on there good work like well study, helping mother and father, cleaning house, gardening etc. Let her build very good awareness about systematic savings well as the hardworking nature to get awarded promptly.
Teach her on compound interest and the magic of compounding. It is very good in this age to know how compound interest works and how the amount increasing by its power.
Give practical knowledge on banking services like using ATM, cheque book, internet banking facilities etc.
Age group 15 to 18 – Give directions to get knowledge on various investment instruments available in the market. Teach her about mutual funds and how it is working, fixed deposits etc. Let her get awareness about various investment products and the difference of returns from these products and different risk levels related to each products. Teach her the possible systematic and disciplined investment methods available with various instruments.
Starting mutual fund investments using SIP (Systematic Investment Plan) will be very helpful to teach disciplined investment style in this age.
From the age of 18 – Give well awareness about stocks and how stock market working, mutual funds and how mutual funds working, profit and loss possibilities with each of these instruments, risks related to such investments. It is important to teach the pros and cons of investment instruments that is directly related to stock market.
Let them start stock investing using there own D-mat account, which you can help to open in there own name. Give them idea about the preparations required to start stock investments by providing investment practices used by legend investors. You can present them the very best available biographies and books on the work of legend investors, to get her very good ideas on successful investing.
Help to start her personal financial plan by providing the idea behind it and convincing its requirement for her life. Help her to plan and build her own financial plan by identifying various possible investment instruments by assessing risk taking capacity teach them the methods of selecting good investment instruments for long term.
If you plan properly from the beginning, I can assure that your kid will be a master financial planner at the age of 30. By doing such, you are not only leading her life through proper and bright channel but also, inspiring her to pour this knowledge to her kids.
Parents should take necessary precautions when teaching there kids about money and savings. Parents should identify and correct any over enthusiasm which may happen to there kids on money. If allow, this can lead them to be a money greed character. This should be avoided using proper guidance and timely corrections.
My best wishes to those already started teaching savings and investments to their kids and also best wishes to those who planned to start the same.
If you have any articles or ideas on kids and money, please forward that me to add in this blog to get useful to others.
Commenting on this article will be considered as an appreciation.
Picture: mikebaird
An
early action to teach your kid about money and savings are a good idea
to give better money management ideas when they grow. Using simple
methods depends on there age, you can easily bring them getting good
understanding on money and can grow a habit of savings. Below are some
practical methods a parent can use to teach there kid about money and
savings. Have a look:Money lessons to kid
Age group 1 to 7 – Give her a piggy bank and let her collect and deposit coins to that box. Regularly give coins to your kid for her piggy bank. This approach build a habit of small savings in the early ages.
When the piggy bank is full, open a savings bank account in parents name and deposit the amount to that account. Small drops can form a sea in the future.
Someone in my place starts this habit at the age of 2 and still he following at his present age of 43. The account his father opens for him still alive with enormous amount from his small deposits for long term and now he planned to teach this habit to his daughter and present this account to her.
Age group 7 to 10 – Give her awareness about savings bank account, how adding and removing money from savings accounts, how the money growing in it with interests etc… teaching her about interest calculations will do magic at this stage.
Take her to bank with you and let her learn how dealings are happening there. Give ideas to know more about bank transactions.
Age group 10 to 15 – Start a recurring deposit. Instruct to add a small fixed amount in each month. She can easily collect this amount from her pocket money and gifts. You can also give small amounts as gifts on there good work like well study, helping mother and father, cleaning house, gardening etc. Let her build very good awareness about systematic savings well as the hardworking nature to get awarded promptly.
Teach her on compound interest and the magic of compounding. It is very good in this age to know how compound interest works and how the amount increasing by its power.
Give practical knowledge on banking services like using ATM, cheque book, internet banking facilities etc.
Age group 15 to 18 – Give directions to get knowledge on various investment instruments available in the market. Teach her about mutual funds and how it is working, fixed deposits etc. Let her get awareness about various investment products and the difference of returns from these products and different risk levels related to each products. Teach her the possible systematic and disciplined investment methods available with various instruments.
Starting mutual fund investments using SIP (Systematic Investment Plan) will be very helpful to teach disciplined investment style in this age.
From the age of 18 – Give well awareness about stocks and how stock market working, mutual funds and how mutual funds working, profit and loss possibilities with each of these instruments, risks related to such investments. It is important to teach the pros and cons of investment instruments that is directly related to stock market.
Let them start stock investing using there own D-mat account, which you can help to open in there own name. Give them idea about the preparations required to start stock investments by providing investment practices used by legend investors. You can present them the very best available biographies and books on the work of legend investors, to get her very good ideas on successful investing.
Help to start her personal financial plan by providing the idea behind it and convincing its requirement for her life. Help her to plan and build her own financial plan by identifying various possible investment instruments by assessing risk taking capacity teach them the methods of selecting good investment instruments for long term.
If you plan properly from the beginning, I can assure that your kid will be a master financial planner at the age of 30. By doing such, you are not only leading her life through proper and bright channel but also, inspiring her to pour this knowledge to her kids.
Parents should take necessary precautions when teaching there kids about money and savings. Parents should identify and correct any over enthusiasm which may happen to there kids on money. If allow, this can lead them to be a money greed character. This should be avoided using proper guidance and timely corrections.
My best wishes to those already started teaching savings and investments to their kids and also best wishes to those who planned to start the same.
If you have any articles or ideas on kids and money, please forward that me to add in this blog to get useful to others.
Commenting on this article will be considered as an appreciation.
Picture: mikebaird
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Regards,
Maverick
http://spiritus-maverick.blogspot.com/
Sherin - iinternals
Thank you so much for visiting and commenting on my blog.
Best wishes,
Sherin - Iinternals
Regards, Sherin
Its hard to learn to save when you are older as you already have a habit of spending!!
Don't forget to teach a bit about entrepreneurship!
Sherin - Investinternals
Thanks Daniel...
Sherin _ investinternals
Thanks for sharing very good lessons. One thing though is forgotten: which age to contribute to charity, when to help people in need, how to obtain more friends with wisely supporting and partaking ... to become rich in larger extend of that word...
Giving anything to charity will never go without noticed... in my opinion, charity is the best investment... how do you feel?
Sherin - Investinternals
LiaTalks
Sherin - Iinternals
And I must agree, if we teach our children to handle money in their early years, they will grow up responsible adults. Not only will the children be aware of what earning money means, but they will also respect the money their parents make, and when they start to make their own, they will know what to do with it, as opposed to just spending it on who knows what!
Thanks for the post.
:) Very informative and useful.
Sherin - Investinernals
thanks again...
cheers
I would apply the suggestions for my kids aged 6-11 years.
http://letusgrow.blogspot.com/
Sherin - Investinternals
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Geating from blogcatalog!
Thanks!
Keep learning
Sherin - Investinternals
As Athena said, it seems your kid have more than the attraction originally required. Should not allow that and that will be dangerous in some way. I have mentioned the same in the end of this article.
Sherin - Investinternals
thanks for your visit as well a nice comment
Sherin - Investinternals
Sherin _ investinternals
Sherin - Investinternals
Sherin - Investinternals
Sherin - Investinternals
a wonderful article ...I like the idea that of sharing the knowledge... and most important thing i like in you is you are encouraging other individual/bloggers to post the topics in your blog...that is wonderful..
To the above list i wants to add few more points on kids and money
1. Allow your kids to donate money with their hands itself...so that they will develop helping/kind nature.
2.First of all Parents should learn treating Rupee is rupee it does not what matter how you got it. Never show any difference between the Rupee that you earned and the one that your grand maa gave you or you got by winning a lottery ticket. Teach the same concepts to your kids too.
http://www.youtube.com/watch?v=niRBV7hDTh4
and also when ever you have a chance try to pay the money by cash and not by Card. If you use the card you will feel that you are just swiping the card. where as if you pay cash you can see the money and you will feel real pain.
thanks
sravani
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