How To Teach Your Kids To Be Financially Responsible With Their Money
In recent years, the struggling economy has shed light on how important it is to be financially responsible. The crash of the housing market has caused many people to go into financial ruin. Whether this has affected you or not, the important thing is that everybody learn from their mistakes. Moreover, there has never been a better time to teach the younger generation about financial responsibility. If you have kids, this article is a great tool to help you teach them how they should handle their money. Read on and learn.
The first thing you should do with your child is give them an allowance. Now, this is a common practice in many households, however you'd be surprised to know how many kids receive an allowance without actually having to do anything. It is a great idea to give your child an allowance, however you must make them work for it. Give them jobs or chores that they must do before they get paid. Not only will this help teach them responsibility, but it will also teach the the value of a dollar. They are much more likely to appreciate money if they have to work for it, rather than simply having it given to them.
Similar to an allowance, you should also teach your child the value of going out and earning money on their own. Encourage them to go out there and make money. This can be something as simple as a lemonade stand when they are very young, to having a paper route or babysitting job as they grow older. Studies have shown that children who work part time are much more likely to go on and become successful and it isn't hard to see why.
Now that your child has learned the value of a dollar and is out earning money, you may want to consider opening a joint savings account for them to use. Your kids are always asking you to purchase expensive items for them, right? Well when they have their own savings account, they can save up and buy those particular items for themselves. This will teach them to budget their money, and they'll soon learn the importance of saving their money. The sense of accomplishment they feel when they save and buy an expensive item themselves is also a great way to ensure that they appreciate their belongings.
Lastly consider playing games that are based in imaginary money. Games such as monopoly are great because they give your child a glimpse as to how important money is in the game of life. While it may seem like simple fun, you'd be surprised how fast they can pick up on how important money can be.
It is never to early to teach your child to be financially responsible. Doing so at an early age will increase the likelihood that they make smart financial decisions when the grow older. Don't waste another minute and start today.
