Thursday, September 6, 2018

No school will teach this financial lesson to your 12 year child BUT as a parent you MUST!! -Financially Pro

You go to school to get education so that you can ensure living. But many aspects of life which are very important are not being taught in school especially about Personal finance.

Here, I have given life changing lesson you can teach your child about money. Your child will be much more mature about using money which most people are not. I bet they'll thank you in future because of this lesson.

You can do the same with your child whether he/she is of 10 years or 15 years.
This blog is not like you just read and you know.
This blog is about Call to action plan.

To get full out of it you need to apply it with your child to get results and follow the steps I suggest. No doubt you can change accordingly with your situation.

So, let's start.
But wait,
You need to take little care before starting it with your child.
Children are very smart. They only do what their parent does. If I suggest some steps here but you don't follow it then it is difficult to say whether your child will follow it or not.

So, whatever I suggest here, make sure that you do follow the same. I'll discuss it in more detail in later part of the blog.

Our goal is to teach our child financial lesson.
So do you think that we need to teach them retirement Planning, insurance planning?
Of course not.

We need to teach them about money so that they can save money and understand value about money not just price.

Give your child a GOAL

Your child will save money if he/she has a goal. Goal like buying toy, new clothes etc. from their own money.Then you need to see what your child likes.

They'll love to buy stuffs from their own saved money.
You will find that they'll be more passionate about saving themselves so that they can buy their favourite stuffs.
If he/she has a goal then they will save money. 
Don't make goal too far and too tough.
Give them a goal which they can reach easily in one week or 2 week. You can increase later on.

Give them money on regular basis for GOAL

Your child doesn't earn, so how will they save money?

You need to give them money on regular basis as pocket money.

But remember that don't give more money.
Give them money which includes money for their goal, to buy some eatables, other expenses.

Let me eloberate it:

If your child can buy some food to eat in 3 to 4 days and some more money so that he/she can save for goal.
My purpose is to give them money one time rather than giving on demand.

Generally we give our child money as they ask for but by that they won't know about how to manage money for different aspects.

Just calculate total amount of money they would require and give little less.

Give your child a piggy bank

Give your child a piggy bank to save money for their goal.
If possible give them a piggy which is transparent. Let they see their money growing slowly.

Mistakes your child will make while saving

You'll find that when they starts saving money, for the first time or second time they will save all their money.
When they feel hungry they will realise their mistakes to keep their all money in piggy.

Remember that don't give them extra money for any reason. 

Sometimes your child will not save even a single penny and spend all money.
But again remember that don't give them extra money for any reason.

When time is near when your child will reach goal, it may me possible that he/she hasn't accumulated enough money to satisfy goal. 

   When GOAL is reached

When goal is reached let them buy the things from their saved money. You will find that they will be very happy to use things buyed and will take more care.

You can try this call to action plan with your child. But remember that to make them regular you need to do one thing.

Where they keep their piggy bank, just beside it keep your own money where you too save your money so that they can feel that you too save money with them. Keep same or less amount of money what your child keeps.

That's it.
Do let me know if you are going to follow the same and also what was the result.

I'll be waiting to know how much your child saved and what he/she purchased.

Do share this post with others so that they won't miss this post.

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