- Introduce her to the concept of taking responsibility for money. Give her a piggy bank to 'save up' the money that you give her, and allow her to buy something with it when it when it fills up.
- Along with responsibility comes freedom. Let her decide how she wants to use the money(as long as it is not something which she cannot afford)
- Introduce her to the various ways of managing money. for instance you could give her two piggy banks -one for "immediate" or "current" needs and another for long term needs ..that could be like a fixed deposit. She can decide how to allocate the money that you give her between her two "accounts" So the "current account" takes care of those chocolates and small trinkets, while the "fixed deposit" can be used for bigger buys like that expensive doll or dress.
- Have realistic expectations when you hand out the money. For example, you cannot expect the child to buy the daily lunch from the canteen with her pocket money but if she feels like having something "special" then she has to dip into his pocket money.
- If she regularly demands more pocket money don't give into to her demand(unless its reasonable). this will teach her to operate within a 'budget' and make good choices.
Monday, July 18, 2011
The F word
Finance and budgeting -for most of us, these words manage to produce a few butterflies in the stomach . Give your child a head start in managing money with these simple tips.