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Teaching your children about money is essential since it is a life skill that will help them succeed in life. It is crucial that you incorporate learning experiences like identifying needs, wants, savings, etc. into your daily life. Here are a few tips to get started: 

Earning money by doing chores 

Earning an allowance teaches children about the value of money and making decisions for themselves. It also motivates them to take more responsibility and take up tasks they would otherwise avoid like chores. When children have to work for their money, they will learn to spend it more wisely and it teaches responsibility and a strong work ethic. Allowances can also be used to teach budgeting skills.

Allowing them to buy 'wants' with their income 

Living within their means will help them develop their confidence and feeling of financial responsibility. Allow them to buy their wants using their allowance, while you provide for necessities. Also, help them practice planning their spending through budgeting skills or having a limit on how much they can spend. 

Delayed gratification

Tell them about how we save money right now to buy things we desire later. Ask your children to set aside these desires in terms of saving goals. Talk through purchases with your kids and help them weigh all factors that go into a purchase decision. Do not indulge in immediate gratification. Instead, help them set long-term goals for their wants. For example, do they want a cycle? Help them finalize a model and then discuss how much money they need to put aside to be able to buy it.  

Stress the importance of giving 

Once your child begins to earn some money, teach them the value of charity giving. Let them choose the charity. Giving can take many forms, including money, food, clothing, and spending time with people.

Practice what you preach

The best way for children to learn is to observe and imitate their parents. As a result, it is vital that parents set a good example and give appropriate financial guidance. Participate with your children in making key family financial decisions, such as booking a vacation or making a big purchase. This will demonstrate to them how critical it is for the entire family to make sound financial decisions.

You want your children to be self-sufficient adults, but you may need to intervene on occasion to keep them on track. After all, making poor financial decisions can be a costly educational experience.