Today I Learn… I make a point of learning something new everyday. This is what I learn each day

1, Oct 16, 2009

Money Lessons That Children Need to Learn at Home

Filed under: Money — admin @ 12:35 am

Last weekend I read from the Internet about mistakes that parents are likely to make regarding teaching children on money management. Oh boy, all of them sound so familiar. Here are a few mistakes.

(1) Set no limit. One is lucky if one’s child behaves responsibly. Otherwise, one should set a weekly or monthly or yearly limit on how much a child is allowed to spend.

(2) Neglect giving life lessons in daily life. Of course, life lessons include money management. A child starts boosting his/her financial IQ right from home with the parents.

(3) Leave children out of the picture when you make long-term financial plans, considering children too young to understand or sparing them the burden of financial matters of the family.

(4) Fail to start a kid’s saving account and to give the kid an opportunity to manage his/her own finance.

(5) Fail to explain how credit cards and bank work. Actually, many parents themselves fail to set a good example in using credit cards.

I have to confess, at some point during my previous parenting, I have committed the above mistakes, one by one without missing any of them. I am glad to say I am getting better now, after enduring some irreparable losses. Hopefully, readers who are like me, will become wiser because of their previous mistakes.

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