It is always good to instill good financial habits in your children. Though it is a tall order but if you make positive efforts you will surely succeed in your attempt.
Being a parent inculcating better financial habits and good ways to spend money is an integral part of your job. Your present efforts will bring great dividends to your kids in the long run.
Here are mentioned some simple and easy ways to make your children financially fit:
Become a good role model:
Before teaching your children about finances, you should set an example before them. Avoid your bad habits such as compulsive shopping, gambling, over dependence on debit and credit cards, etc. Save money on everyday expenses and teach the same to your kids. First of all rectify your financial habits and then teach your kids.
Start a savings account:
Setting up a saving account is good as it develops the habit of saving money. Encourage and promote your kids to save at least 10 percent to 20 percent of their pocket money. You can reward them for doing so.
Make them aware of credit cards:
Tell the way a credit card works. Make them aware of repercussions of using credit cards. Tell them ‘buy today and pay later lifestyle’ is not good and is bound to lead you in financial trouble.
It is imperative to understand that delayed satisfaction is often associated with ‘financially prudent choice’.
Part-time job:
Ask your child to take a part-time job. This will enable him/her the importance of earning money. Once they learn the value of money, they will never ever waste money.
Avoid being too strict:
Be very particular to avoid being a strict disciplinarian with your young child. He/she is after all a young child and should be dealt with warmth and not with rudeness and over-strictness.
Respect the fact that your teenager is a teenager:
You have to accept the fact that your child is a teenager and not an adult. So be slightly lenient whenever he gets the latest vampire movie or spends money on torn jeans. Within limits allow him/her to enjoy some luxuries but stop if things are overdone.
Let them be involved in the family budget planning:
Involve your kids while planning your household budget. Hear what they have to suggest. This will enable them to comprehend the financial mechanics of smoothly running the household finances.
The youngsters will understand the actual cost of living, paying for home loans, car insurance and maintenance. Involving them in your budget planning will help them develop a realistic approach towards life and money.
