Wondering how you can teach your kids the value of money? If you think your child is financially responsible after attending school, then you are really wrong. There are many different ways in which you can teach your kids how to achieve good saving practices. Money affects all aspects of our lives, and when we show financial irresponsibility we face many credit problems in our lives.
Children are generally oblivious of the importance of money and take things for granted. As a parent, you should teach your children the basic concepts or principles of kids finances. Talk to them about their childhood days and tell them how they used to save money and how difficult it would be to control costs.
Children always learn from the example, always know what is happening around them and ask about their actions. You can use the example of credit cards to explain something to children and ask your children why you use credit cards. This will give you the opportunity to explain to your children the correct use of the credit card.
Use your children’s help to track your electricity, food and other expenses and ask them to complete the budget sheet. When your child starts, you can understand the importance of the money and the financial situation of your home. Maybe your child will help you to reduce unnecessary expenses.
Responsibility for a fancy lifestyle.
Kids, especially teenagers, buy expensive things to impress their friends and others. You do not want to buy things at a cheap price; They are not interested in the functionality of the products, which are available at affordable prices. They just want to make a purchase to start an elegant lifestyle and show their material properties.
If your child makes such expensive purchases with your monthly allowance (pocket money), you should treat this situation carefully and talk to your child so it does not become a rebel. Never give your debit/credit cards to your children. They are not yet ready to take responsibility for transactions/payments, and sometimes they can spend unnecessary things without their consent. Kids should not have a debit/credit card before they earn.
Be patient with them and always stick to your budget.
You have to be patient because your kids are very young and do not need much time to understand financial facts. Every family has a reasonable budget. You can also use a budget to give children financial responsibility, and you can tell them that you spend so much money on certain things. This helps you when you are in the business and your child asks you everything you see. If your kids really long for something, leave them sitting and think of a plan to make money.
If you only offer them what they want, they will never know the value of money. If you take your kids shopping, this would be an exam for you. Ask your children to find the best price for specific items, and you can also give them calculators that teach children how to calculate small amounts. You’ll be surprised how this will reverse your shopping experience.
Teach them financial responsibility.
Ask the children to do some chores. Doing laundry, bringing food or vegetables home, paying small bills for incidentals, etc. Children often accept challenges and tasks to earn rewards. This is where products like Go Henry can help, check out Go Henry Review if you’d like more details.
The task is a good tool to teach children about money management. Help your child to deal effectively with money. Keep in mind that the child allowance must be low so you can buy something small needed or save the amount later for something big. It should not be much to make expensive purchases. Also, ask your child to take part-time jobs during the holidays as it helps them understand the value of hard-earned money.
Manage your expectations.
Do not spend money carelessly in front of your children. Even when shopping with their children, buying things is not common for them. Show your reckless spending. Your child can get carried away by their shopping habits. You must teach your children the importance of personal finance and tell them that they must live and sacrifice themselves in moderation.
Therefore, as parents, you may have understood the importance of money management and now need to feed your children with the same information and give them the advice to save money. Make sure your advice helps your child save money for a while.