When I was a developing kid, they didn't teach me much about budgeting or cash. Luckily, I became a natural saver and didn't accumulate large amounts of credit card debt as soon as I left the nest. Without realizing it, I discovered my frugal behavior as my single mother struggled to support me. My money instructions were unintentional.
Now that I have children of my own, I don't need to wander from the fortune of their financial fulfillment to the good fortune. If you're a person like me, you too want the financial education of your youth to be deliberate and a priority.
See my list below of eight methods for educating your kids about desired economic behavior:
1. Cultivate a Good Mindset About Money
Don't leave your bad feelings and insecurities about cash for your kids. Do your best to avoid using words like "we're bankrupt" and "we don't have any cash." Instead, say things like "This is not a concern at this time" or "This is not in our price range." If you cannot buy something or need to invest in an item, please provide an explanation of other cash commitments that you have. Show them how to prioritize their needs over theirs rather than using restriction phrases.
2. Be Real But Be Positive
Don't lie to your kids about your family budget or pretend to have extra money than you actually have. Be present with them on your budget nation so they understand how cash works. If their financial performance seems to be deteriorating, don't smile and inform them that all is well (though don't panic and don't stress them out). Take advantage of various opportunities, even bad situations, to teach them money management instructions.
3. Prioritize quality time and experiences over material things
Don't buy your baby whole (even if you have the money for it). We all need to give our children first class and feel that they are happy, however, giving in to every wish can do more harm than desirable. He does not want to raise entitled children who sooner or later become entitled adults. Show them that being first-class doesn't come from getting tissue. Show through management that your interest in and time spent with them is actually more valuable than what you can buy from them. This will help them extend a strong self-confidence experience outside of matters related to matter. Do not tear them off objects, destroy them with love and attention.
4. Involve Them in Family Budget Meetings
Involve your kids in their own family finance conferences. Involve them in a discussion about how you plan to shop or plan your next family vacation or bulk shopping. Show them what it takes to run a family and not stash cash for vacations, clothes, and grocery trips. Help them understand what Mommy and Daddy need to give them the life they left behind.
5. Build a mini-economy (and help them build their budget)
Do you give your kids an allowance or do they have household chores where they earn money? If so, help them budget for their earnings. If possible, give them additional ways to earn money by doing more work at home. When it comes to purchases or things outside the family budget, such as toys, video games or high-priced clothing, they need to use half their own money to pay for it. This will help teach them how to postpone joy. If they want to use their own cash to buy it, they will respect and value that item more.
6. Develop Your Business Skills
Show your kids how they can create their own little personal outfits and how they can make extra money using presentation items and services. Help them develop their professional strengths and pursue their hobbies. Teach them that if they can provide value to someone through an item or service, they can make money. For example, ask them to promote water at the neighborhood park on a hot day in the summer season or help them start a car wash service (don't forget to subtract the cost of water from your earnings!).
7. Set them up with an investment account
If you are already saving competently for your retirement, open a custodian or basic investment account for them. You can put as little as $10 - $15 per week into the account and let it grow passively over the years. This is a great way to give them leverage in investment and asset development. The custodial account is under their control until they turn 18 or 21, depending on the nation. Remember, any accounts in your child's name can be considered an asset when used for college financial aid applications.
8. Talk About Debt
Have a one-on-one conversation about credit card debt and search for the best car loans before you send off to college. Recognize the importance of stopping credit purchases and accumulating large debts before they graduate. Talk about your studies with loans and the importance of getting a good credit score.
One of our primary duties as parents is to prepare our youth to be fair adults in the real world. Giving them the right tools and guiding them on the path to earning, spending and handling cash will set them up for ultimate fulfillment.
It is by no means too early and it is never too late to educate your kids about cash and instilling appropriate monetary behavior. Give them the best start you want on your path to wealth.
What are you currently doing to unite your children for financial achievement?