3 important financial concepts that you should teach your kids
Kids can absorb knowledge faster when they are young. Hence, it is important to instill good money management concepts in them when the kids are still small. Here are 3 things you can teach your kids:-
- Ways to earn money: teach your kids about active and passive income. You can start to pay them small allowance if they offer to do some house chores. This can let them understand the concept of active income and it takes effort to make money. You shall also be educating them that the money can be used to make money (generate interest) even without much effort. Help them to save their money and show them the interest even they are not doing anything. Let them understand the concept of passive income.
- Delayed gratification: Place a small amount of your kid’s favourite food in front of them; offer them more food if they can choose to delay eating them by 30 mins. This is to let the kids understand the concept of delayed gratification. Sometimes, good things do not come immediately, they need to wait and delay the instant enjoyment to enjoy more in the future.
- Money is just a tool: Explain to your kids that money is not the utmost important thing in life. It is just a tool we use to achieve what we want in life. Explain also money cannot buy time.
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