Children often absorb things that they see around them during their growing up years and it becomes a part of their behavior. The same applies even in the case of financial discipline and money matters. Children mostly learn financial habits from their parents and follow in their footsteps. As parents, if you portray efficient money management skills you will in a way help your children to imbibe the same.

Parents generally consider it a duty to earn money and create wealth for their children. But it is equally important to teach kids how to conserve wealth. To create an upbringing of financial prudence is a much-needed concept that parents ought to teach their kids.

Here are some tips for parents on how they can inculcate financial discipline in their children and help them in mastering money

Teach kids the value of money – Teaching kids the importance of money is important. But it is not that easy to instill that value in young minds. So, how are you supposed to do that? Simple, let your kid learn to earn their wishes. Rather than obliging to or fulfilling all their demands without a question and giving them whatever they ask for, encourage them to earn their wishes by contributing to the minuscule household chores like watering plants in the garden or running errands, etc. Also, encourage them to save money that they receive as gifts during festivals and get-togethers to buy things that they wish to have like, expensive toys, gadgets, etc.

Introduce the concept of the piggy bank – This is another way to bring financial discipline to your children. Let your child know the concept of savings and let them deposit their money received as gifts in a piggy bank of their own. It will be a delight for the children to see their money grow with every penny they save. Moreover, children can use these savings to fulfill their wishes or to buy an item of indulgence.

Be prudent with your finances – It is a known fact that children observe and learn whatever they see around them. Like other things, children tend to pick financial habits from their parents. Thus, parents need to be careful about the way they spend or the way they splurge so that children could learn some good habits from them.     

Encourage financial literacy for kids at an appropriate age – Introducing kids to the basic concepts of financial literacy is also important. Let the child know about the concept of banks and financial institution and their basic functioning. Having a joint account with your child can help in this regard to teach them by example. Try to coincide the real-world learning with the concepts learned in books.

Inculcating financial discipline in children is necessary to make them responsible citizens. Rather than enforcing it, try to make it a part of their habit like other good habits that you like to inculcate in them.