It is the responsibility of the parents to build discipline, manners in their children. It is also very important for the parents to teach their children lessons about money and how to be disciplined with money.
1) Manage your pocket money: It is always recommended for the parents to make their children financial responsible and aware. Parents should try and allot money to their children and tell them to manage their monthly expenses. This will make teach them to manage their expenses and money at the same time.
2) Explain the difference between needs and wants: It is the duty of the parents to make their children understand the difference between needs and wants of their children. They should also make their children understand the importance of things required at that point of time and should teach them to compromise on the things not required.
3) Saving is important: Parents should make their children realize the importance of saving and also teach them to save money out of their pocket money for a bad day in the future. Parents should guide their children and make them understand how important saving is.
4) Plan your money: It’s the duty of the parents to help their children learn Money Management and also help them to manage their money in a right way. They should also encourage and make them plan to collect money if they need to buy anything special which is out of the reach for now.
5) Buy assets, not liabilities: Parents should guide their children to use their money to grow it and not pay the debts. Parents should make their children understand the importance of money growing and also at the same time make them understand how liabilities can spoil their income level and affect their finances.
6) Make them aware of inflation, interest rates, real rate of return: Parents should teach their children about this Financial Advisory terms so that they can be aware about it and use in it in the future. Inflation is a factor which eats away major chunk of our money and depletes our purchasing power. Interest rates is a percentage charged on the money borrowed and real rate of return is the return you earn excesses of inflation.
7) Pamper them: Don’t be too strict on them to manage their money. It is always good to give surprises to them with the things they desire to have. If you can afford something they need, then it is always recommend not to postpone it. Don’t be too rude and stingy about money. Their smiles are priceless.