Therefore, you’ll want to equip your kids with as many money skills as possible before they head out, to study, work, and take on adult responsibilities. The following are some tips and ideas on how to begin influencing your children and their long-term financial choices, and help them budget with their allowance, so they too can enjoy a secure and comfortable future.
It’s Time For Responsibility
One way for your kids and teens to learn how to budget is to let them put it into practice while they still live at home. Providing weekly pocket money, or a monthly allowance, in exchange for jobs and chores will reiterate how they can earn in the future. If they want to buy something in particular; encourage them to save their own cash so that they can buy it themselves. Working towards something they want, saving successfully, and eventually going to buy it will give them plenty of positive associations with saving money, and ensure they continue their good habits into adulthood.
Open a bank account for your kids and go through their monthly statements with them. Children and teens will soon get to grips with how and income, savings, interest, and spending will work on a larger scale in the future. Look into how goal setting works so that they can work towards something major, and they’ll feel like the money they’re saving is more than worthwhile. Providing your kids with enough information regarding finance will make sure they make smart decisions when it comes to cash in the future, and won’t be coming back to mom and dad for handouts and loans.
It’s Best To Lead By Example
It’s no secret that the best way to influence your little ones is to lead by example. Your kids will constantly be soaking up what you do and mirroring their parent's behavior, even if they don’t realize it, so become a great financial role model for them. Explain how your household bills work, and the reasons that you go out to work; ensure that they can grasp the idea of generating an income so that you have the means to pay for life’s essentials.
You can pass on the knowledge about budgeting your monthly outgoings to older children and teens, so they understand how all borrowed money has to be paid back. Educating your kids on how and why adults spend their income, will ensure they’re financially savvy when it comes to leaving the family home and setting out into the big wide world.