Wish your teenager understood money? Start early!
An Assumption on behalf of the reader: we all know that children need to know the ways of money and it should not be left to destiny or to be learnt by trial and error later on in life. “what and how to teach your children about money” – Winston Churchill’s famously quoted – “I love to learn, but can’t say the same thing about being taught.” With children and more so with teenagers it is never easy to “teach”, they simply don’t want to be taught. But they should just know. They should know about money. Yeah, but what is that, they should know about money? Your child should know that - Money is a scarce resource and has to be used judiciously - Money has to be earned and doesn’t come free - How much you want and how much you have will not always match - Money is really not everything. It is important but not the only important thing in life
You’ve to get them to learn, by themselves in an easy and fun way, so they own it up, take pride and practise. And with something like money, which can be a bit tricky, sensitive and sometimes dangerous how do you do this effectively without sounding preachy? The answer is a well designed and executed “Allowance Plan”! Give your children pocket money. Now, don’t jump off your seat. Read on… Children who are ten years of age are ready for an allowance plan. Regular (monthly / fortnightly / weekly) allowance money can be given to them that they may use to handle some of their expenditure. How much money will depend on what all expenses they will handle. For example: One could start with some basic expenses like say, snacks after school. The child may want to buy a drink or grab a quick snack from the canteen during or after school. Sit down with the child and find out how much he normally would spend on this snack every day. Let’s say he spends Rs.20.00 on the daily snack. For five days in a week he would spend Rs.100.00. So every Monday...
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