Teaching your children to be financially responsible can be a challenge, yet is very important when preparing your child for financial success in the real world. While they may depend on you now, when they become adults they will have to pay their own bills. Teach your child how to be good with money with these five practical tips:
Learning to be frugal and mindful of our spending starts at a young age. Giving your child a small allowance can help them to learn how to manage their money. It will also help them to appreciate the amount of work involved in making money, and how fast it can be spent if they aren’t careful. Talk about money with your kids; discuss ways to save and budget when wanting to purchase an expensive item. It’s important that they know how much things costs.
Give Them Some Control
Once your child gets a little older, they may start earning a little more money by doing other chores such as babysitting or mowing the lawn. Allow them to spend their hard-earned money the way they choose. This will allow them to learn by experience, by applying the values you’ve taught them earlier. They will begin to understand that trying to get the most out of their money is worthwhile.
Let Them Be a Part of Budget Planning
When coming up with the family budget, allow your child to be a part of the planning process. You should show them the budget and let them see where the money goes. Paying bills is a part of being an adult, so you want them to be able to pay their own when it comes time. This will give them a solid foundation for their financial future. Many children that are left out of the budget process grow up having a hard time paying their bills on time.
Open a Savings Account in Their Name
When your child is about 8 to 10 years old, open a bank account in their name. Each week allow them to deposit part of their allowance into the account. Over time they can watch their money grow. This can be very exciting for them, and it will teach them the importance of saving.
Set the Example
Children will do as we do, rather than as we say. If we want your children to become financially responsible, it`s up to us as parents to set the example. Let your children know that you have a budget and follow it, that you make choices on a daily basis regarding how you spend money. When your family saves up for a special treat, a vacation or a purchase, let your children know it`s because of your careful financial planning. They will learn that budgeting and saving has advantages.
When All Else Fails
Once your child has reached adulthood and they still have a hard time making ends meet, a loan may be a good alternative. By borrowing money from a reputable lender like 24Cash, they will have the money they need. This will teach them how important money is, and they will be responsible for paying the loan back over time.
These simple tips will help your child learn how to become a responsible adult. While money isn’t everything, we simply can’t live without it. Having a solid financial foundation can help them thrive as an adult.