Teach your children healthy money values

The best thing that you can give to your children is imparting lessons on how to handle money wisely. This will help them to have a strong foundation and sound values. Giving them money lessons at their early ages would help them understand value of money, the basics of budgeting, save towards a goal, etc. rather than splurging out pocket money. This particularly happens due to peer pressure and influence of social media. However, here are some money values you can teach your children.

Differentiate between needs and wants
The first lesson that you can give to your children is to differentiate between what they want and what they actually need. Children are usually tempted with chocolates and toys or they may need a new pen. So, here you can explain them the difference between how a pen is a need and chocolates and toys are their wants. Helping them identify their needs and wants would make them realize where and how they should actually spend their pocket money on.

Value of money
Making your children understand the true value of money is really important as understanding the value would help them make rational decisions about the money. However, for this, you don’t have to give them lectures. In fact, this can be made interesting with the help of board games like monopoly or business. Discussing money with them through games can attract their attention to the use and the worth of money.

Recording cashflows
Help your children to keep record of income and spending. This will help them to understand how they spend and then you can explain them which were the spending that they should have avoided. This will make them understand the basics of budgeting and also help them to choose their spending habits. Even when they save every month, you can help them with investing those saved money in an investment vehicle. This will also help them understand how to put savings to a more productive use.