10 Ways To Help Your Kid Develop Good Money Habits

Set good examples as children usually replicate what they see their parents do

- Ashok Kumar ER

Money doesn't grow on trees is a saying that each one of us has heard at least once in our lives. But what if money could 'grow' and in a way that it can take care of all our needs even post-retirement?

With rising inflation, increasing lifestyle aspirations, as well as life spans, it is important to not just save money but do more with it, that is, invest it to beat inflation. Like adults, children too need to understand these concepts of personal finance management so that they are well-equipped when they have an income of their own.

But how exactly does one teach a child to do that?

It's important to remember that, 'Monkey see monkey do' is the approach that children follow, so they usually pick up and replicate what they see their parents do from a very young age. Fiscal life skills is sadly not a subject taught in school, and consequently, the onus of what children learn and replicate throughout their adult lives lies squarely on the parents. Here are 10 ways for you to get started with teaching 'money skills' to your child:

1. Give your child a certain 'fixed' amount of pocket money every month to develop the idea of having their own money and thus, responsibility. Encourage them to not spend it all.