Teaching Your Children Financial Responsibility
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In school, children are taught a plethora of subjects, ranging from math to science to philosophy, foreign languages and painting. However, children these days are never taught one of the most basic of subjects: financial responsibility. As parents, it is our job to make sure our children have this vital tool to succeed. Here are some easy steps you can take to make sure your little ones will learn the value of a dollar saved.
- Make Them Work for It: Your children should be made to work for their allowance, instead of just being handed money once a week. They should be paid for the chores they do, and for how well they do them. Not only will you be teaching them a sense of what it means to work for a living, but also a great work ethic!
- Don’t Let Them Blow It: Allowance money is all the income your child has, and they should be allowed to spend on that video game or shirt they always wanted. However, make sure that a small portion of their money is also spent on something that does not benefit them directly. Have them donate a small amount of their “pay-check” to help out a cause of their choice. It teaches children that their entire pay isn’t just for fun.
- Save for Later: Giving your child a savings account is the best things you can do for them. Make sure that they can add a few of their dollars a month or a week to save for that XBox ONE or bicycle. Your children will begin to grasp the concept that you have to save for the things you want in the future.
- Be a Role Model: Let your children actively observe your budgeting and spending processes. Show them how you balance a check book, and how much money goes into groceries and other things. It is important for the child to know what things cost and how much money goes into those “invisible” costs of heating, water, and the mortgage. Even if you decide not to give them the exact figure, let them know how many various items have to be accounted for. This will give your child more of an appreciation of why you cannot just buy them that $20 toy they’ve been begging for.
Financial responsibility is one of the most important gifts you can give your child. Don’t waste this valuable opportunity to teach them something that will benefit them for the rest of their lives!
Sources: http://voices.yahoo.com/secure-childrens-future-teaching-them-financial-12159191.html?cat=25 http://money.cnn.com/magazines/moneymag/money101/lesson12/index3.htm http://www.dummies.com/how-to/content/teaching-your-children-financial-responsibility.ht