how to train the children to be good at financial in final point?
Kindergarten is the perfect time to start building financial literacy skills, as kids learn about coins, wants and needs, and how to spend money. However, teaching money management to kids can be tricky. Today’s kids don’t have as much exposure to cash as before, which can make money a more intangible and difficult concept.
Start an Allowance. Kindergarten is a good year for kids to start getting an allowance. Set your kids’ allowance depending on your own finances. Rule of thumb is $1 per year of age, so a five-year-old would get $5. You don’t have to give them allowance every week, however. They could receive it every two weeks, or on the first and fifteenth of the month.
Solicit Their Services. Capitalize on your child’s interests to “employ” them. Can you pay them to take the dog out in the backyard? Or, does your child like to help out and want to fold laundry for a fee? Be sure to separate “fee for service” activities from general family expectations (making your bed or cleaning up) that everyone is expected to do.
Start a Microbusiness. Whether it’s a lemonade stand, a hot apple cider stop (with adult supervision), or a snack table at the neighborhood block party, having the experience of selling will teach your child to value the money they receive. Once they have cash in their pocket, its time to start managing it.
Money Management: Spend, Save, Share
Comparison Shopping 101. When Levine’s five-year-old son was shopping with his own money, he quickly noticed the small price difference between a Hot Wheels and Matchbox car. As your child learns how to shop, the supermarket or toy store aisle is the ideal time to talk about prices. Choose two items that your child wants and compare the prices. Which is more? Which one would he buy and why? Is it worth the extra cost to buy the package with the character on the front?
Set a Saving Goal. Your child’s first saving goal should be for a fun game or toy. Post a picture of her goal on a piece of paper and draw stepping stones with money amounts that add up to her goal (stones of 5 cents or $1 depending on the ultimate goal). Then, as she saves those money amounts, color in the stepping stones. When she’s filled in all the stones, go shopping!
Start the Habit of Sharing. An important part of having money is sharing. For your family, it may be dropping a few coins in the collection plate, or letting your child donate to a favorite charity. To add to the experience, attend a charity event so they can see where their money went. If your child donated to a local pet shelter, attend an adopt-a-pet day.