Somebody said….money saved is Money Earned.

Do you know that Warren Buffet, the chairman of Hathaway Berkshire Inc started saving money in a very early age and started investing money into the stock market instrument.

Here is following tips to teach money lesson to your kids.

1. Piggy bank
Buy your child, a piggy bank and give him or her some rupee to put in it. Know that he or she won't understand for some years that a rupee saved today can be better than a rupee saved when he / she is 20 years old. Let the children pay money with their own for their toys or other things bought from the shop, no matter you fund them so that they understand the difference between coins, a small note and a big note. Supervise carefully, though, since sometimes, they still like to test things in their mouths.

2. Pocket money
For older children, establish an allowance so he or she can begin to make independent money decisions. Some folks will advocate linking the allowance to certain chores; I prefer establishing the basic chores (e.g., making the bed, cleaning their own room, and setting the table) as something each person does because they are a part of a family and it is their job. Be very careful that they do not become too money minded and keep asking, “How much will I get for looking after granny when she is unwell?”  However, giving your child ‘extra’ tasks (like washing your car) for which he or she can earn money can teach her the satisfaction that comes from working for a goal. Your child will also understand that the more work that's done, the more money he or she earns - a valuable life lesson.

3. Encourage your child to invest money. 
Tell him/her that he is save some of his / her pocket money and returns back to you. You will return him the saved money by adding few more bucks with your own.

4. Summer jobs
Encourage your child when he or she tries entrepreneurial ventures like buying crackers in the wholesale and selling in retail, taking part time tuition, or doing a part time reception job etc. There's no substitute for learning on the job.

5. Lead by example
Last, but not least, be mindful of how you talk about money. Do you complain about bills, fret about money, and always use negative terms about finances? Don't be surprised, then, if your kids feel negatively, too.


Getting yourself on the right financial track is the best lesson of all for your kids.