Bringing Up Your Children To Be Financially Responsible AdultsPosted: June 15, 2014
Start teaching your children financial responsibility as soon as they can count and understand the value of money. This way as they grow older and become adults they will have a much better sense of both the benefits and consequences of their every financial decision. This article will hopefully provide you with some helpful tips on how to teach your child to be financially responsible throughout their life.
Setting An Allowance
An allowance for kids will help teach them the value of money and what it can buy. They can also learn to save up money to buy something that is more expensive than that's week's allowance is. A good idea is to have your child earn their allowance. Be sure to set defined rules for their chores or whatever you choose to pay them for and don't wavier from getting a quality job done. Do not overpay them. You don't want them going out into the world later to find that their skill set is not worth what they have been earning.
You don't want your child spending their money on something harmful, like drugs, but do try to allow them to spend their money on things that they want too. You may not think that the latest video game is necessarily the best thing for them to use their money for but it is their money and the goal is to let them learn the value and impact that the money they earn and spend has on their life.
Try to give your children different ways to earn money. You might have them babysitting for you once a week but also give them some periodic one time opportunities to earn a little extra cash. For instance, if you have a special work project that requires you to make a bunch of copies or hand out flyers then you might employee your children to help with that one time task.
Don't Pay For Their Share
Don't pay your child for things they do around the house that are everyday maintenance; such as taking out the garbage or cleaning their room. These are things that they are not going to get paid to do as an adult, so don't set the expectation that the reward for that is money.
Also don't pay them for everything they do for the grandparents. Grandparents deserve help just because you love them and not because of financial gain.
Teach your children early on about the importance of saving money. Teach them to save or pay themselves first before anything else. There is no reason that children should not save to at least help pay for that first car or to pay their car insurance each year. They should also be taught to save for a rainy day or for their future retirement.
When your children are young you can play games with them where money is involved. This helps them to understand how money works in our society before they actually start dealing with real money.
Help your child to understand that they can't just take things that they want from someone else. Teach them to find ways to earn and pay for those things that they really want in life.
Charity and Giving
No matter how poor we may see ourselves there is someone who is worse off in some way than we are. Your family may not have much money but you may all have your health or you may all be mentally sharp. Teach your children that charity and lending a helping hand is a rewarding part of life. Good deeds always come back to a person. It may not be directly from the person that you have helped but there will be a good deed extended to you by someone else when you are most in need of it some other time in your life.
When your children are old enough teach them about banking. Show them how to keep a basic register and track balances. They need to learn about withdrawals, deposits, interest, debit cards and fees.
When your children are little take them grocery shopping with you. Take time to check the prices of items with them so they can get a sense of what items really cost and why earning money to cover such items is important.
Keep Their Money Safe
You should definitely teach your children to keep their money safe. Teach them to never brag about how much money they have. Even if others don't want to steal what your child has it can very easily cause them to lose friends if their friend doesn't have as much money put away as your child does.
Start While They Are Very Young
If your begin to teach your child about money and personal finance when they are young they will grow up to be responsible adults and have less financial problems than many others. Getting a good start in anything, including money management, makes a huge difference with ones success in life.