Parenting : Children Moneywise

Money

How to plan an outing within budget with children?

Children need to be made sensitive to spending money judiciously early in life.
When it comes to spending money, children usually show insensitivity towards it and are seen to be impulsive buyers. They want to buy whatever they see on shelves.

Case 1: When parents have financial constraints
Most of the times we as parents try to satisfy each and every demand of the child , trying to hide our own financial constraints. It shouldn’t be the case that every time we hide our financial constraints but every time we are out for an outing we can’t tell them of our financial constraints as well. This will make children go crazy. They may think that every time we come out for an outing we are told of financial constraints and they miss the enjoyment part of the trip. It’s not a good idea to tell them about the financial constraints every time during an outing but its better to decide budget for the outing beforehand and as far as possible stick to that budget. Let the children, if they are old enough, decide how to work within that budget and have an idea of the budget.

Case 2: When parents are affluent enough
Even if we are affluent enough it is better not to display wealth before children. This is very important for disciplining our children financially because if we don’t discipline them now this will lead to great financial disaster later on in their lives. Decide the budget for the trip well in advance and try to manage and constrain your trip within that.

Teaching children to work within the budget is very important. This teaches them self control and self discipline and keeps them away from the habit making impulsive spending decisions.

Some important questions related to money and children

While disciplining and teaching children money following questions can be taken into consideration:

Q1. When should you be giving allowance to your child? How does it help?
Most probable answer: We should consider giving allowance to the child as soon as we feel he is old enough to understand money. Giving him allowance helps him understand a lot of things about money from savings to spending money judicially.

Q2. How to teach good spending habits to children?
Most probable answer: Its better we learn the better spending habits ourselves and demonstrate them to children in everyday life. Children learn what they see.

Q3. How can you judge by simple ways what kind of spender your child is going to become?
Most probable answer: When we go out to a restaurant how much discretion he offers in deciding the menu , what kind to tips he gives decide what kind of spender he is going to become. When we go out on shopping looking at his choice and observing his style of shopping can tell a lot about him.

Q4.What questions should you ask your child when your child asks for increase in his allowance?
Most probable answer: What are your additional expenses for which you think you will be using this extra allowance or what additional savings are you going to make?

Q5. What should be your future course when your child over runs his budget?
Most probable answer: Most probable course of action could be to making him compulsively put extra money into his savings from his allowance till that extra spent over the budget is recovered.

Q6. How to minimise the anger on spending habits of your children as soon as they reach college level?
Most probable answer: Making them financially savvy while they are still small.

Q7. What way of spending should be taught to children?
Most probable answer: Children should be encouraged to pay immediately for the services availed by them to make them more financially disciplined.

 

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