Child Get THR money? Let's Teach Him Money Management! | Aurel Saragih | Kinderkloud

Child Get THR money? Let's Teach Him Money Management!

financial literacy for children

Every long holiday and meeting with family, parents' children must get THR money from relatives and family. The amount of THR money given is not small for children who are still in school, especially at the elementary school level. After receiving THR, what can children learn? Yes! Of course children learn how to appreciate the gifts of others and also what is no less important is that children must learn how to manage finances, you know. How do you teach money management to children as early as possible?

Give your child his own wallet to teach responsibility

When giving a child his own wallet, it doesn't need to be big, the child is given a responsibility to look after it. Parents also have to keep an eye on the location of this wallet so they can keep reminding their children of their responsibilities. The wallet used should be one that the child can carry every day and has space for banknotes and change. Remind your child the function of the wallet which is the place for the money that is obtained when receiving THR from the family. Invite children to count the amount of money they have. Eits, don't let the parents actually save it unless asked by the child!

Teach the principle of saving half of what you earn

Explain to children the importance of saving, namely to be able to buy the things they want or even to use whenever they need them. Saving after what he has is important so that the money he has doesn't run out. Parents can also discuss with their children about the nominal amount to be saved if the child doesn't want half of it to be saved. Also give 3 choices of items that the child wants to buy or get at the end of the month as a reminder that he can buy them with the money saved.

When saving, don't forget to buy another savings wallet that is separate from your current savings. This teaches children that a place to save is different from an everyday wallet. Children will understand that saving is an important thing to do and get used to doing it until adulthood.

Explain expenses and income to children

It is important for children to know the amount of money and what they want to buy with the money. After receiving the THR, usually children will immediately buy toys or maybe other things that they really want right then and there. Every time you shop, give your child an explanation that the amount of money may not be enough to buy all the things. Explain that children can only buy a maximum of several items with different nominal values. Children sometimes just want to get what they want right away so they don't know the difference between need or want. Also ask the child whether he really needs the toy or not. Also, remind your child that with this money they can buy other things that are more useful or more needed.

Teaching children about money is quite challenging. It is also important for parents to be able to provide an example of how to manage money for their children. Not only when you get THR, you also have to get used to saving when you get pocket money. Children will be trained to appreciate money and begin to develop their planning skills in managing money. Not only that, the child will also learn that he must be able to withstand his desires in a few days or months when saving.

Reference

https://www.forbes.com/advisor/personal-finance/how-to-teach-your-kids-good-money-habits/

written by Sarah Aurelia S.Psi of the BehaviorPals Centre

Money management, tips to manage money in children, financial literacy

Children 4 Years - 6 Years / 4 Tahun - 6 Tahun / Parenting / Pola Asuh / Family / Keluarga / Child Get THR money? Let's Teach Him Money Management!

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