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Small children are capable of grasping money management skills easily, if they are taught in the right manner. This is because when they learn the skills early, they sooner they will start applying them as they grow older. Children between 7 and 10 need to be taught simple money management skills by their parents.

Assign simple and suitable jobs around the house which children can perform without much of effort. Also, allocate an appropriate amount which the child will be paid as salary to the child. After the\he assigned job has been successfully completed by them, pay them their earnings. By doing so, the child will realize the value for his/her work and will also strive to earn more.

The next is to show the child how to spend his money wisely. Explain the three important categories that a child should do with his money – saving, charity and spending. Split it as 40-10-50 or 50-10-40, whichever is suitable to you. This way, they learn to spend some of their hard earned money on their favorite things, give away a small portion for others and importantly, save a portion of it so they can use them in the future to treat themselves for the great job that they’ve done so far.

Since savings is primary here, give them a box or jar (a transparent one) where they can see how their savings increases as they work for it. Visualizing the way their savings grow will have a positive effect on the child; similar to, when they see sprouts from the seeds they’ve sown with their tiny hands.

Charity money can be given away to church or any other children home, where they can see how blessed they are. Such things will instill humbleness and simple living in them.

Simple lessons on savings will teach them to be more responsible with their money and prevent them from falling into debt traps in the future. Now that the teachings are finally over, let them enjoy their hard earned money.

As a parent, opt for budget planning software offered by personal budget planning sites which you could demonstrate to your kid as he grows bigger. This way, you become an ideal parent for your child, giving him financial security at all times.