Wednesday, May 23, 2012
How to teach kid about money
I think teaching your children early about money is good. This skill is very useful for their future. They could manage money and then be rich. Do not spoil your children with much money so they just know how to spend money.
The parent should teach the kid about money. The kid should know that finding a penny is not easy. Explain them that they will need more money when they enter to the college.
1. Give them some money to your child. It is impossible to save if he/she has no any money. Do not be misery to your child.
2. Save a part of his/her income. Some article advise to save 50%. I think it is depend on the amount of money and the child need. For example, the child who has income 1000 dollar a month could save more money than the child who has income $ 100.
3. Plan to buy a things for next two years. For example, Buy an electric car toys for your kids.
4. Give your children piggy bank so they can put some penny into there. You do not have to buy a beautiful piggy bank. The simple piggy bank is enough to your kid.
5. If the piggy bank has been full, you may save the money to mutual fund or stock. You may buy some part of the money for the child toy. It will motivate the children to save more money.
6. The important is the parent behavior. If the parent has bad behavior in spending money, the child will follow what parents do.