Why kids should learn money management?

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MJ Gonzales │ExecutiveChronicles.com

If some adults blame their parents why they are not good in budgeting and saving, then they should be more motivated in learning money management now so they can be good examples for their kids.  Indeed, money matters are serious issues that most parents want to handle on their own.  The problem with it is the kids not only become too dependent with them, but also develop wrong behaviors towards money like impulsive buying.

“So when they start working, every time they are commended by the boss or they accomplish something they go out on impulse to reward themselves because nobody else is going to reward them,” Dr. Wan Nursofiza Wan Azmi, who’s AIF director of strategy, policy development and research and part of ‘Finance Matters: Understanding Gen Y ― Bridging the Knowledge Gap of Malaysia’s Millennials” study shared on Yahoo.com.

According to Money Management International, Inc., there are ways to teach kids about money management like giving them allowance, support them to have a small business, open bank accounts for them or make your grocery  moments as your financial coaching time as well.

Credit: Pixabay
Credit: Pixabay

“Teach children how to shop by value rather than brand. Remember to always shop with a list. Shopping with a list helps children understand how prior preparation can lead to great savings in the end,” a tip of the 57-year old non-profit organization that provides financial education programs

Meantime, Wall Street Journal (WSJ) reported that teaching math may help kids not only to compute and understand numbers, but also make them more comfortable in learning money management. In their interview with Shawn Cole, the professor of finance at Harvard Business School said if people have lack of math skills they would invest, spend, and save their money based on their feelings and may commit “worse money mistakes.”

On the other hand, Lynsey Romo, North Carolina State University an assistant professor of communication shared that being open in sharing money issues, whether they’re sensitive or nor, will not make kids clueless. Apart from this, teaching them early on would keep them away from anxiety.