How to teach your children financial responsibility?
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When teaching children financial responsibility, it is always advisable to lead by example. Children like to imitate what adults do, so before you teach them about fiscal responsibility, you need to ask yourself whether you are financially responsible.
It will be challenging to teach your kids what you don’t practice, as this will make them question your teachings.
Teach your children the importance of saving
Helping your children to understand that they can’t have whatever they need whenever they need it is not an easy task. Most children do not know the toys they have, the food they eat, the clothes they put on, etc., cost money. So the first step in helping them learn to save is to let them understand that the items they need cost money.
Once they have understood the value of money and what it can afford, you can teach them that if they need better toys, it will take time to accumulate enough money. If you have been giving them some pocket money, encourage them to put some away from time to time. Not only that but also let them have in mind what they intend to do with the money.
To illustrate the importance of saving, you can also have a free personal checking account in La Vista, NE, where you can also save cash. Let them know that you are also saving, and the purpose of your saving. For example, you can save for a family vacation. It’s important to let them know you are saving because you can’t afford it right from the amount you are earning.
In the end, you need to keep your promise by spending the money you saved on a family vacation. You can also ensure they spend the money they saved on what they had planned to spend it on.
Teach them good spending habits
When you give your kids some pocket money, do you follow up on how they spend the money? Most parents give their children money for lunch at school, but they never care to know what the children spend the money on.
To help your kids to develop good spending habits, let them account for all the money you give them. If they start doing so at a young age, they will learn that money spent needs to be accounted for. And when you realize that some spent the money carelessly or on unnecessary items, you can admonish them, then advise them on what to do next time they have the cash.
Another way of teaching them good spending habits is to give them a whole week’s lunch money on Monday. This will help them learn that even if they have a large sum of money, they need to plan how to use it for a particular duration. A child who squanders his/her money may have to go hungry in the week. In the week that follows, such a child will be more careful.
Teach them the importance of giving
For your information, giving is also a financial responsibility that a child should learn at a young age. Philanthropic families usually inculcate the habit of giving in the kids. While it is commendable to mail your contributions to a charitable organization each month, this may not help your kids. The children learn most when they see, understand, and actively take part in the giving process.
That doesn’t mean you should stop mailing your contributions. What it means is you can also find another charitable activity that your kids can take part in. For example, you can set aside one weekend to take care of the street families or visit those in hospitals. This way, your kids will learn the value of kindness and using their money on things that also benefit society at large.
Children learn from parents, so if you are not good at financial management, you better take a course in this critical discipline. After you gain knowledge, you’ll find it easier to help your children. Whatever you tell them to do, you also need to show it by doing the same, whether saving, spending carefully, or giving back to the community.