Money management is challenging and a work in progress but as you work on your financial management skills do remember the children; if you have any. You can help them develop good money habits that could become useful in future; when they begin dealing with their own money, budgets, and who knows maybe, the country’s economy. To help your child
1.Give them a little
As soon as possible give your child some money; the few coins or even notes to put in the offering does not count. Give them money that they can keep and do with what they want. That initial handling and ownership is important. If they choose to put it away in a little tin or box, go out and spend it with you or their best friend is up to them. If they decide you are the best person to keep it safe for them by all means keep it safe.
2.Keep your word
“You can always ask for it whenever you want.” You told your child when they gave you their money for safe keeping. So when they come to you and say,
“Can I have my money now, please?” Keep your word and give it back to them.
Do not tell them that you do not have change and wave a large note in their face. This is something which is incomprehensible to them because they did not give you a note like the one you are waving in their face. Theirs was a 1 or maybe a 5 and you do not have it? This will signal to them that you lost their money and probably should not be trusted to keep it in the future.
3.Let them spend it
Do not take it for safe keeping and then spend it without their knowing and tell them it bought something that they had no choice over.
“Your money bought the shoes you are wearing or the bread you are eating” is probably the truth but it is not fair to the child because they are confronted with a pair of shoes or a slice of bread they did not sanction.
Actually, you will find that they will willingly contribute to their new pair of shoes or the meal for the whole family if you let them be part of that process. Imagine their smile when they put on a pair of shoes ‘their money’ bought or they watch their siblings eat relish that they contributed to.
“Can I buy this with my money?” They ask you as they wave their 5 note at an item that costs 10 times more.
“No. You do not have enough money.” Should be your answer and probably even add “and at the moment neither do I.”
Explain to them that it is because it costs more than they hold. Encourage them that all is not lost because if they collect enough of the 5 notes or if they get another gift they can maybe come back and buy the thing they want.
This will teach them to delay gratification and know that sometimes there is no or not enough money to make a purchase.