What is the most effective way for parents to teach their children about money? essay sample

 

 

Successful money management is an indispensable condition for children to form a financially stable household in their future. Apparently, it is essential not only to earn money but also to spend them smartly. Cautious parents have developed several strategies aimed to introduce children to the world of money and its rules. Some advises consider quite a mundane things such as allowances and Christmas presents, however, some savvy adults developed quite smart models which will make children closer to the ideas of entrepreneurship.

Perhaps, the easiest way to teach children about money is to give some allowance from time to time. The money can be spent on buying the lunch at the cafeteria, however, they can be saved and in a while spent on something more costly. Speaking of which, parents can take more or less generous sum of money and put it into an active account informing children that they will receive this money when they come of age. By that time, the account can considerably increase the sum so that children will be able to see how saving works.

Besides saving it is important to teach children spending their income. Most of them would like Santa to bring them electronic devices of the latest model, and this is the time to explain why paying the double price merely for the expensive advertising campaign is unreasonable. It will be much cheaper and considerate to buy this precise model in some time when the excitement is not so large.

And, of course, parents shall let children know that they cannot spend all their income on everything they want. Giving a kid some comparatively large annually allowance, parents shall deduce a quarter of it for “family taxes” and another 15 percent for a saving account. Thus the children will get used to the fact that there is a great difference between what they earn and what actually remains to spend on their wishes.

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