As you watch your kids grow up, you will have to teach them many things about life. However, if there is one topic that seems to get swept under the rug as they grow, it is financial responsibility. You can take the initiative, use your own experiences as a teaching guide, and pass on precious knowledge to your kids so that they grow with a better understanding of how to manage money. Here are some topics to consider sitting down and talking to your children about.
Have A Budget
Budgeting money is a valuable behavior to start practicing from childhood because it not only teaches them discipline but it teaches them not to overspend. The best way to go about this is to give small amounts of money to your child and encourage them to save and only spend if it’s necessary. If they spend unconsciously but don’t have enough for other things of higher importance, they can learn the consequences of not having a budget early, and avoid it costing them more later in life.
Save, Save, Save!
Saving is such a precious tactic, especially when it comes to money. If children have the value of delayed gratification embedded in them, they’ll learn that sometimes it is better to save your money for when something greater may come around. So the next time you hear the ice cream truck down the street and your child is tempted to run to their piggy bank, encourage them to hold off on it. Something greater could be on the horizon.
This goes without saying, but one of the most precious things you can teach your child is the value of hard work. If children grow up with the expectation that lavish items and great things will come to them from somebody else, then they won’t appreciate the value of working hard. Make sure they understand that they will only get what they put out. The more they put out, the more they will get.
Credit Is Important
Having good credit is essential to gain access to things your child will eventually need when they grow up. Many teenagers and young adults have the false mindset that credit is free money. Teach your kids that credit must be handled responsibly, because when you use credit it means borrowing from others and eventually having to pay it back. However, if they practice responsible credit card use, their credit will look impeccable.
Dave Ramsey | Learn How to Budget
Investopedia | 10 Tips to Teach Your Child to Save Money
Better Homes and Gardens | Teach Your Kids Work Ethic
CrediReady | How to Teach Teens About Credit Cards