Most parents prefer to give pocket money to their children on a daily basis.The reason is quite simple, because parents do not feel confident with the child's ability to manage money, when they get money on a monthly basis from parents.
Even though if you familiarize your children with monthly allowance, there are many benefits that will be felt for children.Here are 5 reasons for the need to teach children to manage money early.
5 Reasons for the Need to Teach Children to Manage Money
1. Teach Them Budget Concepts
Financial budget is one of the factors that determine someone is able or not achieve financial goals in the future.Providing monthly allowance is one of the best steps you can take to teach children the concept of budgeting early on.With a given monthly budget, your child will learn to adjust the purchases they will make.They will learn, if you spend money on the first day, then they will not have money for the next month.
2. Avoiding those who make unnecessary purchases
Children will surely be easily tempted to buy new games, food, accessories, and so on.
If you do not train them early, then the habit of wasting money will always be done until they grow up.With the provision of monthly allowance, children will be far more selective when making purchases.They will think twice when tempted to buy new toys, buy food, and others.
3. Teach Them to Save Money for the Future
You can also easily teach children about the concept of saving for the future. Teach them that saving or setting aside as monthly money can help them achieve financial goals in the future.Say that by saving, they can use the money saved to buy new clothes, buy new toys, buy game consoles, and so forth.Teach them to learn to delay the fun and get used to saving early from the allowance given.If your child is over 17 years old, start teaching them about the concept of investing. Teach them that investment is beneficial to grow the value of money they have today.
4. Teach Them Responsibilities
Pocket money given every month can help you teach children to learn responsibly.If they waste their allowance, the consequence is that the brand will not have money the next day. If they save money and are not excessive when using money, then they can save some pocket money which later can be useful to buy the desired item.
5. Give Them Freedom
You don't have to interfere in children's decisions about what they spend using the allowance.As long as they do not use the allowance given to buy something dangerous and inappropriate for them, they are free to use the allowance.This method not only gives your child freedom in financial matters, but can also be useful in teaching them to make the right purchasing decisions.
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The conclusion of all is that familiarizing your child with monthly allowances can actually provide many benefits.You can teach them about responsibilities, help them make informed decisions, and teach them financial concepts early on.
The financial basis above will be very useful, when your child has grown up and is able to make their own money from work.They can be wiser in managing finances and able to control spending that is not very useful.
You can also insert lessons about the importance of investing for the future. Give them an understanding that investing can help achieve various financial goals in the future.
Hopefully the knowledge and knowledge that we convey above can provide many benefits and inspiration for you. Good luck!
Source : https://koinworks.com/blog/mengajarkan-anak-mengelola-uang/
Source : https://koinworks.com/blog/mengajarkan-anak-mengelola-uang/
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