Good Financial habits mean developing prudent decision-making habits for financial matters. Good financial habits include habits like making a purchase based on the utility of a product and not the price tag of the product, making a plan to buy something big and avoiding impulsive buying, avoid unplanned expenses, etc.
Teaching kids money matters is as important as teaching them other regular academic subjects. Kids learn much faster and develop those learning into habits in childhood mush faster. Financial education is as important as moral education. As parents we start teaching moral values to kids at an early age, we should also start teaching financial responsibility at an early age. This will help children in developing money related good habits which help them in keeping their finances in control throughout their life.
Good financial habits might mean different for each family, but some of the common points include:
--> Teach kids to never waste money
--> Teach them to buy based on merit and not on the price tag
--> Teach them that you are always willing to spend money on needs but think twice before spending on wants
--> Start giving them some pocket money to learn about savings, expenses, and investments.
--> Explain the importance of creating budgets
Good financial habits are like best friends who stay with a child throughout their life.
To learn more about good financial habits, visit our Finance Learners program page.