Bangalore: ‘A penny saved is a penny earned’ makes the same sense to children as it does to adults. So, it becomes exceedingly important for parents to teach their kids about money, its importance and about saving and investing it. With the economies of the world talking about various economics terms, kids might become curious about what they hear. So, explaining them in basic terms about money and managing it is always a good deal. Here are some do’s and don’t’s given by SmartMoney to teach our kids about moolah –

Discuss More Often About Money - Talking to our children about money properly is a challenging but mandatory task. Making them understand the importance of starting on early savings is a good option. However, one must know that teaching them about money can be tricky. They must learn the importance of money but not get blinded by it. No one would want another Scrooge after all. Inculcating the importance of money is not a destination but a journey. So, parents must be patient about this tedious, yet fruitful process.

Use Routine Tasks to Discuss About Money – Everyday tasks can be used to set an example for kids. Going to the grocery store or to the ATM are fine instances to teach kids about money. They must know that there are sources of income and ways one can disburse it. Demarcating the 2 is crucial as kids must know that there has to be a steady flow of money in order to spend it. So, go ahead and make the little ones know about this fact of financial life.

Have a Routine – Kids can be taught about having a few good habits with money. Telling them to save a little each day, week or month is a good way to make them learn about saving. Gradually, they will learn that a good source of money can be their own savings as well. So, they will spend wisely and less recklessly.

Teach Kids Charity – ‘Charity Begins at Home’ could not be more true in this situation as well. Kids must know that money is feisty entity and need not favour all. So, it is up to us to help the less fortunate ones with money. Being a part of an NGO or donating a generous amount to people in times of calamities must be taught to children. However, make sure that they know who should be the right recipient and not get fooled by free-loaders. Kids must know that they can give only if they have enough for themselves and their dear ones. Also, kids will learn what they see. So, be a giver yourself first before teaching them about charity.