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Parenting Tips: There is no need for any special class to help children understand money. They can be told about savings, expenses and things of need even through small daily tasks at home.

With the help of parent activities, parents can explain to their children that money is limited and it is not necessary to buy every thing of their choice immediately. Learn 8 ways to teach savings and proper spending to children through easy games.

1. Make a small budget of pocket money
Give the child a fixed amount as pocket money. Ask him how much of it he wants to spend and how much he wants to save. This will give the child an initial understanding of handling money.

2. Keep a savings jar or piggy bank
Keep a separate piggy bank or savings jar for the child. Ask him to deposit some part of the money he receives. With time, when the child sees his savings increasing, he will understand the importance of saving money.

3. Involve your child in shopping
Give the child small responsibilities when grocery shopping. Tell him that you have a fixed budget and you have to buy the necessary items within it. From this he will learn that while spending money one should look at both the need and value of things.

4. Explain the difference between a need and a want.
Explain to the child with simple examples that school notebooks are important, whereas a toy or chocolate can be just a favorite thing. Understanding this difference is a very useful lesson for children.

5.Make family budget at home
Play a little game at home. Give the child some imaginary money and give him options for things like groceries, studies, traveling or toys. Then ask him where he will spend the money. This will help children learn to make right choices.

6. Save for something you like
If the child likes a toy or book, ask him to save a little money for it instead of buying it immediately. With this, the child will understand that to get something, it is necessary to wait and save.

7. Practice with coins and notes
You can play a small shop game at home. Make the child practice buying things and giving money by giving fake money. In this way, it will be easier for him to understand notes, coins and their value while playing.

8. Set a savings goal
Set a small goal together with the child. Like how much money needs to be saved to buy a toy, book or game. Every time a save is made, let him know how close he has gotten to his goal. This will also keep his enthusiasm up.

Keep these things in mind while teaching money to children

• Teaching children money understanding doesn’t mean restricting every expense.
• Explain the value of money, saving and the right place to spend it as per age.
• You should also develop the habit of spending and saving as per your need.