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5 Tips For Teaching Money Management To Children

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5 Tips For Teaching Money Management To Children

My parents taught me a lot of things about life, but the one thing that never seemed to be a priority was how to properly manage money.This lack of financial discipline carried over to my adulthood, which is when I had a real difficult time managing my funds in the beginning. However, I wasn’t going to make this same mistake and decided to teach my children some money management skills early on. I took a varied approach, including helping them opening their own savings account, which makes them comfortable dealing with banks, paying them for doing jobs so they learn the value of earning money, and encouraging wise spending anytime they wanted to by something. These, as well as gradually introducing them to the adult world of finance and spending can make them money masters by the time they hit their teens. Here are the top tips I learnt during my years of parenting, to effectively teach your children solid money management skills.

  1. Open a Savings Account

A lot of parents open a savings account  shortly after their child is born, but the child really isn’t an active part of that account. It’s best to open an account where the child can play an active role once they are able to understand the concept of money. Children often receive money for special occasions like birthdays or holidays and its fun for them to feel “grown up” for the child when they take that money to the bank to deposit it. These are life-long saving skills that carry through into adulthood.

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  1. Do Not Pay for Chores–Pay for Actual Work

A lot of parents use an allowance system for kids, paying them for keeping their room clean or for chores like doing dishes. I never did that, because some things are just life skills and a part of everyday life nobody is going to pay you later on in life. Instead, I broke down job descriptions into two categories: household responsibilities and paid jobs.Some chores such as cleaning a room or taking out the garbage is considered to be part of everyday living meaning that they won’t be paid to do them when they are adults. But other chores such as yard work, gardening or heavy duty cleaning are jobs that you may normally pay someone else to do. So, in this case, I would pay the children for this type of work. This strategy teaches children the value of earning money and hard work.

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  1. Learning Financial Penalties

Real life is full of financial penalties such as traffic citations, overdraft fees and other fines. Kids need to learn this early on. Children are mischievous and when they intentionally do something that costs money, don’t cover for them. Instead, punish them  withdrawing money from their own savings account and clearly explain why their own misbehavior led to the withdrawal. This will teach them take responsibility for their own actions.

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  1. Encourage Wise Spending

A parent loves their children which means our instinct triggers us to buy them the things they want. But this doesn’t teach anything about money management. It’s fun for a child when they want a special toy or piece of clothing, to purchase it with their own money.  They’re going to learn valuable life skills and patience if you allow them to save and pay for some purchases all on their own.

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  1. Investments

A lot of people know little to nothing about just how investments work, but it’s a skill that should be developed early on and will pay off in the long run. If you do investments yourself, take the children with you to the broker and allow them to observe the process. Teaching your children the very basics of how investments work will only help them later on. Combining this with the basic skills of managing a bank account, taking up a job and have a savings strategy will allow them to become experts on managing their own money.

Featured photo credit: Sean Donnerty via flickr.com

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Last Updated on January 5, 2022

How to Help Your Child to Get Better Grades

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How to Help Your Child to Get Better Grades

Children are most likely to say that they want to just lounge around or rest for a while after spending hours listening to lecture after lecture from their teachers. There is nothing wrong with this if they had a rough day.

What’s disturbing, is if they deliberately stay away from schoolwork or procrastinate when it comes to reviewing for their tests or completing an important science project.

When it seems that it is becoming a habit for your child to put off school work, it’s time for you to step in and help your child develop good study habits to get better grades. It is important for you to emphasize to your child the importance of setting priorities early in life. Don’t wait for them to flunk their tests, or worse, fail in their subjects before you talk to them about it.

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You can help your children hurdle their tests with these 7 tips:

1. Help them set targets

Ask your child what they want to achieve for that particular school year. Tell them to set a specific goal or target. If they say, “I want to get better grades,” tell them to be more specific. It will be better if they say they want to get a GPA of 2.5 or higher. Having a definite target will make it easier for them to undertake a series of actions to achieve their goals, instead of just “shooting for the moon.”

2. Preparation is key

At the start of the school year, teachers provide an outline of a subject’s scope along with a reading list and other course requirements. Make sure that your child has all the materials they need for these course requirements. Having these materials on hand will make sure that your child will have no reason to procrastinate and give them the opportunity to study in advance.

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3. Teach them to mark important dates

You may opt to give them a small notebook where they can jot down important dates or a planner that has dates where they can list their schedule. Ask them to show this to you so you can give them “gentle reminders” to block off the whole week before the dates of an exam. During this week, advise your child to not schedule any social activity so they can concentrate on studying.

4. Schedule regular study time

Encourage your child to set aside at least two hours every day to go through their lessons. This will help them remember the lectures for the day and understand the concepts they were taught. They should be encouraged to spend more time on subjects or concepts that they do not understand.

5. Get help

Some kids find it hard to digest or absorb mathematical or scientific concepts. Ask your child if they are having difficulties with their subjects and if they would like to seek the help of a tutor. There is nothing wrong in asking for the assistance of a tutor who can explain complex subjects.

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6. Schedule some “downtime”

Your child needs to relax from time to time. During his break, you can consider bringing your child to the nearest mall or grocery store and get them a treat. You may play board games with them during their downtime. The idea is to take his mind off studying for a limited period of time.

7. Reward your child

If your child achieves their goals for the school year, you may give them a reward such as buying them the gadget they have always wanted or allowing them to vacation wherever they want. By doing this, you are telling your child that hard work does pay off.

Conclusion

You need to take the time to monitor your child’s performance in school. Your guidance is essential to helping your child realize the need to prioritize their school activities. As a parent, your ultimate goal is to expose your child to habits that will lay down the groundwork for their future success.

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Featured photo credit: Annie Spratt via unsplash.com

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