Get premium membership and access questions with answers, video lessons as well as revision papers.

Benefits of teaching kids financial responsibility


Date Posted: 3/19/2013 1:59:41 AM

Posted By: SimonMburu  Membership Level: Silver  Total Points: 838

In these hard torturing economic times, it's wise to train the future generation benefits of spending wisely. Money is the source of happiness but at the same time it is the source of almost all evil, even the Holy Book recognizes that money is never enough. Being financial irresponsible may bring about indigestion even if you bag a six figure salary at the end of the month. The wise men say that charity begins at home, therefore it will be of great importance to teach your children how to be financial responsible and they will reap the following benefits.

1. They will understand the concept of long-term and short-term savings. As they grow up in that financial responsible path their minds become wider in the perspective of using money wisely. A generation that is financial wise is as good as a wealthy nation.

2. They learn to work extra hard. Children below the age of 10 years have very little need for money but you can always teach them to work for money. A good example is making them perform little home chores and perhaps you can reward them with a little money like Ksh. 10 every week. This practice will help them learn to work hard and become successful people in life.

3. They learn to set goals and abide by them. Goals can be very motivational. Piggy banks can be used to save coins and this should let them save up to certain amounts and then allow them buy their favorite toys or other gadgets. Through this type of saving they will be able to set their own financial goals and work hard to achieve them.

4. Help them make judicious lists and stick to them. It is not bad for small kids to learn the concept of scale of preferences and

how to maneuver through the list. This will be of great benefit to them when they grow up as they will learn the basics of human wants and needs. Even if they will have small salaries, they won't be facing stiff financial problems.

5. They learn to spend wisely. This is the ultimate benefit of being financial responsible. Spending wisely means having a good smooth life even if money is scarce. This also teaches them to accept their financial position and be able to enjoy life.

Next: Banks offering education scholarship in Kenya
Previous: Simple Techniques for Ensuring Data Integrity

More Resources
Quick Links
Kenyaplex On Facebook

Kenyaplex Learning