Some say it is important for parents to teach their children about the importance of money. Why and how should they do it? Include examples from your own experience.
It has been observed by many that young individuals, nowadays, are becoming extravagant/spendthrift; they are influenced by their elite peers and try to complement those standards, irrespective of their economic status, resulting in mindless spending. Likewise, the cost of living is spiraling, and tender minds play a major role when it comes to shopping for groceries or other things, and they are profoundly attracted by advertisements, packaging , and so on. Hence, to inculcate prudent spending habits, it is essential to teach them the role of every single penny.
Some judicious steps can let young minds grasp the knowledge about the relevance of financial resources. They should be involved in the budgeting exercise, and asked for their opinion: this will enlighten them about monthly expenses. Apart from that, they can be asked to help with household chores, and render community services, and then rewarded financially for that. By doing this, they will get to know the worth of each penny they spend. This practice will make them more prudent when it comes to spending money. To corroborate, an interview conducted with residents of Guelph revealed that 60% of non-essential expenses of the little members of families dropped when these strategies were applied since they realised the pain of earning money when they helped the elderly in jobs like in snow shovelling, cleaning front and backyards.
To conclude, one should not forgo any opportunity to make their wards learn about how to spend and save as these small steps lay the foundation of an independent, well-informed and secure adulthood, and discourage extravagance.
