This post has been contributed.
Your children learn a lot when they’re at school. They learn how to read and write, how to add and multiply, which chemicals are acids and which are alkalis, and how the world became what it is today. These lessons are important, of course, but there are some even more essential ones that they don’t get taught at school. One of the most vital is how to manage and handle money responsibly. This, unfortunately, is a skill left to the parents to teach. If you want to raise financially savvy and responsible children, then here are five things you need to do.
Start Discussing Money Early
Whether you like to admit it or not, money is the life force that keeps the world going around. Because of this, it’s crucial that you start discussing the topic of money and finances with your children from a young age. You don’t necessarily need to go into massive amounts of detail, but, around five or six, they should start to learn that the things you buy cost money and that you need to work to earn it. You may also want to open a savings account for them to use.
Talk Often And Open
As your children grow older, you need to make sure that you discuss money issues regularly and openly with them. You shouldn’t scare or burden them with your financial problems, but there are a few things you can talk about, depending on their age. For example, if you’re using a site like https://debtconsolidation.co/ to consolidate your debt, you could explain what that means and why you’re doing it. Discussing these personal finance decisions will help prepare them for later.
Give Them The Control
Instead of looking after your kids’ money yourself, you should give them the control and allow them to make their own financial decisions. If they have money for their birthday or because they’ve completed chores around the house, then let them buy what they want with it. You should also teach them how to make deposits and withdrawals using their own bank account. You can offer financial advice now and then, but, generally, you should allow them to things themselves.
Let Them Make Mistakes
Everyone makes money mistakes now and then, and because they lack the experience that adults have, you can be sure that your kids are going to mess up at some point too. When you know your child is doing something wrong, it might be tempting to stop them, but you should avoid this at all costs. Instead, let them do whatever they want to so that they can see the consequences. This way, you can discuss what happened, and they’ll learn not to do it again.
Provide Limits And Structure
Although you should give your kids control over their money, this doesn’t mean they should be allowed however much they choose. In fact, according to https://www.roostermoney.com, an average 14 year old should be receiving no more than around $12 every week. By setting limits, your kids will learn that money does run out eventually and that saving is vital. To help them further, you can help them to establish a saving and spending plan to give them some structure.
Financial responsibility is a lesson that children don’t learn at school. If you want to raise your kids to be smart with their money, then make sure you follow the advice above.