Helping Your Child With Their FinancesPosted at by ifydcat on category Personal Finance
Helping your children establish their personal finances at an early age is one of the best things you can do for them. It is a good thing to help them figure out how to manage their finances at an early age because if you don’t then they might never figure out a way to get their personal finances in order. You do not want to see your children struggle through life because you never taught them how to get their finances in order. It just takes a little time throughout the years and you can teach them good habits for the rest of their life.
Give them a weekly allowance and see how they manage it. You want to start them out when they are young with a weekly allowance of around $10. Make them do chores so that they are working for their money. Teach them that they have to work for their money in order to earn it, and that things in life don’t come free. After you establish this for them it will be good for them because they will know that from here on out if they want to purchase something that they have to dedicate the time to working for it.
If they aren’t managing their money and are just blowing it then you are going to want to teach them a thing or two about budgeting their money. Let them know that they should go with the mentality of spending half of their money, and then saving the rest. When you break them into good habits like this then they will know that they can save up a lot of money over a short period of time. You can tell them that it is fine to spend the money that they saved on an item that they really want, but that they should always try and have a little money saved for emergencies.
Show them how you pay your bills and manage your money. You want transparency between you and your children. When they see the sacrifices that you make to pay your bills they will appreciate all that you do for them. This can help motivate them to manage their own finances the same way you do. Even if this doesn’t click in their heads now, in the future they should follow your style and budget their money the same way you do.
Securing your child’s financial future is key to making sure that they will always have a good amount of money on them. If you don’t teach your children how to manage their finances they could grow up to nag you to let them borrow money all the time. When your children know how to manage their personal finances they become more independent, and they will only come to you for serious financial inquiries. Try your best to teach your children good habits early on so that they don’t have to go through life managing their money in a bad way.