With the current economy and irresponsible lending practices, it’s more important than ever to teach your children about money. Letting them loose into the world without a solid financial education is nothing short of setting them up for failure, so start young and raise fiscally responsible young people.
Read on to discover five tips for teaching your kids about finances. You’ll be surprised how easy it is to raise responsible adults.
Be A Good Role Model
You never want to fall into the pit of do as I say, not as I do, so be sure that the rules you’re teaching your children aren’t contradicting your actions. If you tell your kids to save their money, but spend every dime in your wallet, you can bet they’ll be calling foul before they make it out of high school.
Make Them Get A Job
Teach your kids the value of money by making them get a job. Whether they work for you or for a company, it’s important that kids understand how hard money is to earn. Once they know how much goes into getting a dollar, they’ll be less likely to be frivolous with their cash.
Reward Them When They Save
If you want your kids to be savers rather than spenders, you should reward their good habits. Start by setting up a savings account at their local bank, then for every dollar they contribute, add in another fifty cents. They’ll soon see how advantageous it is to save rather than spend.
Help Them Learn To Manage Their Expenses
Bargain hunters, couponers and other extreme savers didn’t teach themselves. They learned from their parents to be frugal with their money, and that life lesson will serve your kids well when they head off to college and start making their way into the world. Take your kids to garage sales, use coupons at the store and teach them all of your favorite tricks for saving money. If it’s legal, it’s valuable, so pass your good habits on.
Teach Them To Make Decisions Themselves
Don’t always say yes to everything your kids want, even if you can afford it. Instead, give them a budget and make them prioritize their wants versus their needs. Teaching kids to not expect instant gratification is a life lesson that will stick with them.
Teaching your kids about money is an important part of parenting. Even if you didn’t have the best financial education, taking the opportunity to learn with your children can put your family in a better situation for years to come.