Seven keys to raising financially responsible kids
Parenting is very challenging. It’s a fulltime job trying to teach your kids to be honest, responsible and hard work at the same time, encouraging them to be kind and respectful. It’s a lot and sometimes you have to pick and choose what matters most for your child.
But above all teachings, raising financially responsible kids is very important. It doesn’t require any certain age because making money is not specific to any age. It is never too early to set children on the right path to financial success.
One day, your child will face the big world all alone. As a parent, it’s your responsibility to inculcate good money lessons in them. Teach your children as to how they should manage their money and why money management is important.
1. Teach them to save
All those monies your children get from people, including you, what you can do is get them a piggy bank where they can be saving it. Any little cash they get, be it a gift or errand tip-off, let them cultivate the habit of putting it in their saving bank.
2. Make sure they spend cautiously
As children, it is easier for them to get carried away by trivial and enticing things which appeal to them. This means they can easily use their money to buy toys, junks and other things that entice them.
What you can do as a parent is to ensure that they buy things that could be helpful for them.
3. Open a bank account for them
Bank has created initiatives like Smart Kids Save. You can now open a bank account for your child who is as young as any age.
This is very important because from that account you can even save enough money to take care of their future.
4. Play educative games (Monopoly)
As weird as this advice may sound, it actually works. A game like Monopoly is fun because it will basically teach your children about money and financial responsibility.
It will teach them the importance of having money, what happens when you spend lavishly and go into debt. Losing money several times in the game will teach them how to manage their resources in real life.
5. Lead by example
Be an exemplary parent. Children learn from their parents and they pick up habits either good or bad from them. If you are a financially responsible parent, it is possible that your kids might pick it up from you. Try to inculcate saving habits in them.
6. Enlighten them on some financial insights
Teens are very easily influenced. For teenagers, it is very tempting to buy new items like a phone, clothes or even start using credit cards. The advertisements on TV and other media constantly grab their attention towards a fancy world. Try to make your kids understand that they should spend on things they need.
7. Talk to them about financial goals
Every parent’s happiness is to see their children succeed in every way. You can discuss with your children concerning short-term and long-term financial goals.
Discuss with your children how much allowance they should spend each week and how much they must put towards short and long savings. Ask them to save money for charity as well.
Source: The Nation