It’s never too early to start teaching your children about
financial responsibility. After all, it’s a lesson that they’ll be using and
perfecting for a majority of their lives, so they might as well start learning
between naps and pretend time. There are different methods that can be used for
children of different age groups, so chances are good that you’ll be able to
find a method that both you and your child will enjoy.
Allowances
Some parents have no problem giving their child an allowance
while others feel that it puts them in a position where their daughter or son
might ask for more allowance or an advance in their allowance. You don’t
necessarily have to give your child money to teach them about financial
responsibility since they might develop the idea that they should be paid
whenever they’re responsible. On the other hand, allowance is a good way to
show them the rewards of hard work.
Small Savings
Another lesson that young kids can learn about is how to
save their money rather than spending it as soon as they get it. While they
might be tempted to run out and use their allowance on candy and small toys,
you can teach them the merits of saving up for a big purchase like a new video
game or a bicycle with a Spend
Smart debit card. It’s reloadable and prepaid giving control to the
parents, while allowing some freedom.
Parents can also give their child a piggy bank that they can
use to learn about long-term and short-term savings. This will be an invaluable
lesson as they start to age and have to set aside money for rent, savings,
credit card bills and car payments.
Adult Play Time
Something else you can do to teach your kids how to be
responsible with money is to take them grocery shopping. They’ll undoubtedly
want to grab a few items that aren’t on the list, but this presents you with
the opportunity to show them the dangers of impulse shopping. Show them that
they aren’t the only ones who want to go on a rampage through the store when
they can’t by some of the things that they want that aren’t on the list. Make a
game of researching toy cars, dollhouses, action figures and other toys to
demonstrate how to find the best one, comparison shop, look for deals and how
to negotiate.
All of this might seem a bit too early and a bit too much
for young children to learn, but you can make it fun and plant the seeds of
financial knowledge and responsibility that they’ll use for the rest of their
lives. There’s no need for them to waste money and make bad money decisions on
their own.
Responsible Teenagers
Rather than having your kids learn about credit cards when
they get to college, start them off while they’re still in high school. Show
them how to use a credit card the right way, the dangers of misusing a credit
card and the importance of paying off credit cards as much as possible before
the end of the month in order to avoid unnecessary interest fees. By starting
their credit education early, they’re less likely to make expensive mistakes
when they get to college and get a credit card of their own. And chances are
good that you’ll be the one who will have to pay for their expensive mistakes.
Start your kids off on the right financial foot not only for
themselves, but for yourself as well.
0 comments:
Post a Comment