Money may just be a means for candy and toys to children now, but when they’re adults, it will become much more important. Money is what will allow them to thrive and avoid many hardships. However, in order for this to work, they must be taught early about wise spending and saving.
Image credit: Stuart Miles | FreeDigitalPhotos.net
Here are five money principles to teach your children:
Control over money
If you don’t let your kids have experience with money, they’ll grow up thinking it’s just handed to them. The result is eventual financial hardship. Start giving your kids an allowance.
Let it be exclusively theirs and provide input where necessary. With time, they’ll discover they have to budget and save for what they want or need.
The value of saving
When your child wants something, like a video game system, encourage them to save for it. Teach them that in the process, they’ll have to cut back on other indulgences. Tell them that if they save this much, they can afford their system in six months. However, if they save a little more, they can afford it sooner. Saving more helps achieve goals faster.
Paying bills
For older children, now is a good time to familiarize them with paying bills. If they have something like a cell phone, subscription or membership, make them solely responsible for paying for it. When they’re adults, they’ll have to juggle several bills each month, so it’s important for them to learn how to budget and save for these expenses while you can still oversee them.
Handling debt
It’s an unfortunate fact that life often throws curve balls, and sometimes, even the thriftiest spender can’t afford to pay the bills. It’s important to teach your kids that debt should only be accrued when it’s absolutely necessary. Let them know that even payday loans must be paid back with interest and in a timely manner. Failing to do so will result in more debt and a poor credit rating.
Be wary of advertising
Few people understand the effects that advertising and marketing has on them, and kids are no different. The ultimate goal is to get people to part with their money. Companies make products sound better or more necessary than they are to do this. Teach your kids about the advertising and its effects, and encourage them to be wary of it.
About the Author:
Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She enjoys writing on fashion and business, but any subject will do. She loves to learn about new topics. When she isn’t writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking.
When researching for this article she learned about a broad spectrum of topics from getting a cash advance in Arlington to the psychology of a child.
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When I was a kid, I was so thrifty. I could save up to 1000 pesos a month from my baon. But now, even if I want to save, I can’t help to spend it because of too many expenses.
monmonkun recently posted…Beelzebub 230 – A Mother Always Worries
In that case, I think you have to find other ways to earn more. Although, of course, it’s helps to live below your means. That is one of the secret sauces of financial success.
Maricel Rivera recently posted…5 Suggestions to Make Your House Semi-Self-Sustainable