Have you ever provided financial advice to your child, younger brother or siblings?
Parents teach their kids many things as a child, and kids imitate their elders just by watching them do it. Things like learning how to cook, organizing the rooms, and many others are taught to kids as a child. Other than these common things, it is very important that parents provide their child with financial advice, how to handle to official paperwork and others.
Handling finances are something parents must teach their kid early on. They need to be groomed in a such as way that in the future, they need not work hard to keep their finances healthy. And if you are a dad who is not sure what advice you must give to your children, go through the list below on what we think are the major areas you should cover.
1. Learn to Earn
One of the vital lesson Nepalese parents need to teach their children is about the flow of money in the house. Dads should teach their children the concept of earning your bread early on. Children need to learn that money is not like apples and it doesn’t grow in trees.
Teach your children to earn money they want to spend. It can be daily household chores such as cleaning the rooms, doing the dishes, taking out the trash, cleaning up after they are done with their homework or their toys. Teach them that they will earn money if they complete a task assigned. A small act early on can have a huge impact later on.
2. Spending Sprees
Children do not know how to spend. Yes, you should let children act their age but not with money. Teach them how to prioritize on where to spend and how to spend. They should not spend all they earn on one toy. Give them practical reasons on why they should spend on certain things and why should they hold back when it comes to others. Teach them to be smart with their spending habits.
Saving is one of the biggest lessons a father can teach his children. Children do not come equipped with the idea to save up for a rainy day. All children care about is the toy or the snack they want. Dads must sow the seed of saving habits early on in a child. You can introduce saving in a fun way like making it a game who saves the most when they are just growing up and later setting it up in a bank account.
Everything is best understood with an example so show them how saving can help them in the long run. Let them buy a toy or gadget of their liking with their savings.
4. Track and Budget
Tracking your expenses and budgeting for it is one of the very important lessons that children need to learn from their dad. It is evident that our financial health will be at risk if we don’t track and manage it properly.
Teach your kids how to draft a budget, calculate expenditure, and differentiate it in various factors such as travel, food, recreation and others. This habit can help your kid in the foreseeable future.
5. Online Payments
The world is changing from analog to digital, and Nepal is fast catching up to that notion. Dads should also teach their kids about online payment and why use online gateways portals. Paying by yourself means you will get change money and it is one of the most dangerous ways of overspending. You never really keep track of your change, whereas with online payment gateways you spend exactly how much you need to.
Online payment gateways like Khalti provides various services through which you can pay your bills instantly and securely and you get certain cashback including loyalty points in return.
All dads must teach their children about investment. Investing your money in the right place is important, whether it is on a fixed deposit, stocks or properties. Teach your children to keep up with the investment opportunities. To make them warm up to the idea you can involve your kid in your various financial dealing and ask for their suggestions from time and again.
Giving children financial advice is no longer an option but a necessity. Dads need to teach their children the concept of money and how to handle it. This leaves less and less space for the children to make financial mistakes and have good financial health.
Do you agree with our list? What financial advice have you ever given to your siblings or kid? Tell us in the comment below.