The Teaching Kids how to Save Money and Learn how to Spend Money Wisely - Essay Example

Teach Kids how to Save Money and Learn how to Spend Money Wisely It is of paramount importance in the time and age of today that parents teach their young ones to understand the significance of saving money for their own betterment. This is said because this money will assist them in their future undertakings and decisions which they take up at a later stage in their lives. Money is not exactly something that the kids should aspire for but it is a means of reaching towards one’s end goals. In the instance of children, the parents and guardians need to play a very significant role. This role comes from the thinking that saving money is important for their individual well-being and these children will reap rich dividends if they have savings under their belts. This paper basically takes a keen look at the ways in which kids can save money and the learning done through these steps is of essence as per their respective understanding regimes. It is a fact that making the children money-minded does not always works to their own benefit. However telling them the importance of money is a wholly different matter altogether. It actually works to the advantage of the parents if the young ones are told time and again the significance that money could have within their lives. On the same note, parents have the responsibility to tell their wards that money is not to end of it all. Money is just the means for reaching their desired destinations and it would be wise on their part if they start saving at the earliest and from a very young age. They must also be told about the negatives involved with having more money with them. The issues of stealing, robbery and fraud must also be taught to them. Thus the aspect of saving money takes the front seat under such discussions. This is because saving could mean opening their bank accounts where they could put in the little cash that they either earn or get as gifts from their elders on different occasions. They must be taught the importance of saving this money for the rainy day. Nobody knows when distress call can come about. So it is better that a child remains ready for the bad times within his future life. Saving will help him immensely since it will make him understand the nuances of life as well as significance of having money under his control. He could take care of people who are not that well-off or who are passing through hardships within their lives. Thus he could also proactively donate to humanitarian causes every now and then and thus earn his spiritual place within God’s books. But then again, it is very important to understand that all this cannot come about if savings are not done in the first place. It becomes quintessential for these children to learn how to save money and to use it effectively for their own good. Not only is saving important, but so is the fact related with spending money wisely as well. Children need to be taught the exact manner in which they could spend money in a sound and adequate fashion. This means that kids have to be trained for their spending patterns. They must be told that there are certain tricks that a child must learn before he is allowed to use money for getting products of his own choice. These could include carrying small denomination currency notes as well as asking for the change whenever the goods purchased are less the amount given to the retailer. These aspects do look trivial in the beginning but it is a given that these issues gain a lot of significance right from the childhood, within the kids. (Author Unknown, 2005) They understand from a very early age that their money is theirs and they must not use it foolishly as it could mean cutting down on their junk food or comics which they love to have on any given day. Opening up a young savers bank account for the kids is a good initiative that the parents can do. This would ask the kids to put in any amount of money that they get from different sources into their respective bank accounts and thus save on money as and when they feel like doing the same. Perhaps they could be given an ATM card to which their access can be limited and their parents’ access be made supreme. This would make their parents know that where their kids are spending money and how often they are drawing out cash from the ATM branches. Keeping a check on them is the right way to going about doing things and the technological advancements that have happened within the banking industry will only help the kids to do something new, which is also wise at the end of the day. Kids need to be encouraged every now and then that they must save their pocket money. This will make them feel attached with their spending patterns and they will not waste their money on useless items. It will also make them feel strongly linked with their needs and run away from their desires and wants, which is a very good thing on any given day. They need to understand that their needs are more important than their cravings and they must buy whatever is needed for them through the money that they have and which they can call as their own, by all rights and means. One thing that is important to know here is the fact that the support system from parents is of essence. This is because the kids feel that their parents will not give them any more money if they end up being short on money at any point in time within the future. The parents must tell them that they are their ultimate saviors and the kids can come up to them at any moment without any hesitation whatsoever. However the parents must make sure that the needs of the young ones do not shoot up and these must be curtailed within abundant proportions. Thus money management is surely an art and not every child knows how to master it. It is only with a little support and advice from their parents that the money handling issues are resolved for the better. This would mean success for the kids as well as their parents in the long run. In the end, it is wise to suggest here that money is something that a person cannot bank on for a long period of time. It comes about and then vanishes quickly. Money must remain secondary within his life and a kid’s ultimate priorities should be his parents and his family. However teaching this kid the good and the bad points related with the usage of money is a very apt thing to do, especially in the time and age of today. They must be told how difficult it is to earn money in the present times and thus these points emphasize the need for having a proper control over money management aspects. Spending wisely is significant since it tells them what they have saved for the future and how much they have within their folds in an abundant capacity. Maintaining a log of their spending is also a good thing which the kids could be taught about by their parents on a constant basis. Money management is a very desirable proposition for the kids all said and done. Works Cited Author Unknown. Kids and Money. Found Online at: http://www.moneyinstructor.com/kids.asp , 2005 Word Count: 1,264 Read More