Teaching Kid About Saving Money

Teaching your kids to save money, living within one's means and the importance of education.

Spend two minutes on this quiz. Simply say Yes or No. That's all.

1. Have you ever sat your child down and talked about the value of money? Have you explained to him/her that one should never spend more than what one earns?

2. Have you taught your child how to save?

3. Do you deny a gift that your child fancies but which you cannot afford (of course, after telling the child why you are not buying it)?

If you have answered in the negative for all the above questions, be warned, your child is in for trouble. And so are you. He or she may just fritter away all the wealth that you have earned.

However, don't scrounge where spending on education is concerned. Studies have shown that parents spending significant amounts on their children's education are the most successful in making their children financially independent.

Children are little human beings with an open mind. They are ready to learn, absorb and grasp new things. They don't have preconceived notions about anything. Instilling habits such as living within one's means, saving for a rainy day and budgeting are not difficult. Don't underestimate the child and assume that he or she will be unable to understand these things. They are smarter than you think and may teach you a thing or two!

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