Children can grasp good money management skills at early age, if it is taught in the right way. The sooner they learn the ropes of managing their money, the faster they will learn to use it wisely. The earliest age to do is between 7 and 10, because that is when they will start to learn basic money matters in school too.

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 second step is to show the child to spend his money frugally. The salary must be allocated to three categories – saving, charity and spending. Apportion the money as 40-10-50 or 50-10-40, whichever is suitable. Now the child learns the basics of: spending the money on favorite things, giving away a part of it to charity and finally, to save a portion of it for themselves. These simple lessons when learnt the hard way, will stay with them forever.

Visualizing a savings jar getting filled up will show how they reap benefits from their hard work; similar to, how they feel when they see sprouts from the seeds they’ve sown with their tiny hands. Give the child a transparent box or jar where they can put in their savings amount every week.

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.

And finally, let them enjoy with their own savings. They could be allowed to buy a favorite toy or dress or video game or even use them for their outings. These simple lessons on savings will teach them to be responsible for their actions and will definitely prevent them from falling into debt traps in the future.