Teaching your children that pleasure cannot be purchased with money is a wonderful and honorable deed. Additionally, it is honorable and right to provide kids the financial knowledge they need to succeed in whatever they decide to do with their lives. The following advice can assist you in teaching your kids the value of money.
Give a reasonable sum. Giving your kids a small, discretionary weekly or monthly stipend can help them understand the value of money. They won’t understand what it is to save money or stick to a budget if your wallet is always accessible for them.
Laissez-eux acheter leurs own Xboxes. As your children get older, you’ll probably smother them with toys and presents, many of which have real health advantages, like bicycles, skateboards, or skis. Along the road, there will be various items about which you and your kids may dispute over their attractiveness, such as video gaming consoles. These are excellent chances to talk to your children about money. Let them work to earn the money to buy what they want while saving their allowance. If you employ them to perform chores, make careful not to pay them more than the neighbors would; if you underpay them, they will learn the value of money.
Encourage them to donate to a good cause. Your children will learn the value of money and develop a compassionate and giving attitude if you expose them to real poverty and show them how a tiny bit of their money may help someone who is struggling.
Open a bank account for them. When your kids are prepared, assist them in opening a bank account. They can then start to earn interest and get an understanding of how the financial system functions. Prior to the age of eight, refrain from doing it. They won’t be able to comprehend the idea of their money being held by a bank. Waiting till they are older than twelve is not advised since teens are dangerously able to ignore and disobey their parents. Do it while you have the most sway and they are prepared to absorb it. Make sure kids are taught how to deposit and withdraw money independently.
Get them involved in saving for college. Despite the fact that your children should help pay for their college bills, most parents understand that the high cost of higher education effectively places this responsibility on the parents. Create separate accounts for each of your kids and contribute fairly to each one. Show them the progress of their fund and how it differs from the price of the school they desire. Unless you have a very high level of faith in their judgment, avoid putting this money in their name. You wouldn’t want the college money to end up being used to buy a fancy new automobile for high school or a frozen banana stand on the sand after high school.