Children's Day 2020: Here are 6 tips to make your kids develop good money habits

While the majority of people actively track their finances regularly, it is also important to make the kids aware of financial planning while they are young. By the time children are seven, their money habits are set. A good money habit can help a child to avoid costly financial mistakes in later life.

Here are some handy tips to make a child develop good money habits:

Open a savings account for them

According to Abhinav Angirish, Founder and Managing Director

InvestOnline, it is a good idea to open a savings account for kids at an early age.

“This teaches them to read and analyze the bank statements which in turn helps them to learn about the concept of savings and interest. One could set the rule of spending some, saving some. Children always find delight in tracking their balance,” he opines.

Make them aware of the concept of goal setting

Parents could also make their children familiar with the concept of goal setting.

In the words of Angirish, “Instead of buying a toy or gadget right away, parents should encourage their child to save money regularly for purchasing a gadget. This helps them to see the concept of investing in action. They begin to develop the habit of setting a savings goal. It will help them make better decisions as an adult.”

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