How Do I Teach My Children to be Financially Responsible?
There is no “one-size fits all” way to teach children about financial responsibility. Financial education is often an ongoing priority as children learn, grow and become more responsible. Although there are many approaches, picking somewhere to start and expanding over time can be helpful. Don’t wait too long to teach your children how to be financially responsible. Teaching your children about their finances is not only helpful for them now but will set them up to have a successful financial future. Use these tips to make learning about money fun!
- Bring them along with you to your financial institution – Do you remember being a kid and going along with your parents to their financial institution and maybe getting a sucker to enjoy. Even as an adult, this is something that is memorable. Tying this fun memory to their financial errands will encourage them to have a positive attitude toward their finances.
- Have them pay for some of the more expensive items of want – Some of the more expensive items that children ask for are items that they want and do not need. Having them save up for these items themselves will help develop their understanding of money and what things costs.
- Highlight and emphasize saving – Since there are an abundance of expensive things to save for as an adult, teaching your kids about saving young will help them financially. Many parents use saving for college as a teaching method for financial responsibility.
- Teach monthly budgeting early – Budgeting is probably one of the harder things to teach. Teaching your kids this early and having them practice it will help them when it’s their turn to start budgeting. Giving your child a small budget to plan a family outing or asking your child to budget for and prepare a meal can help them to understand the act of planning an activity or meal.
- Talk with them about things they will need to save for in the future. – Don’t let your child/ren be blindsided by all the things that need to be purchased as an adult. Things like college, a house and car downpayment, vacations, investments, etc. are important to save up for.
- Open financial accounts for them – Many young people’s financial accounts are the same ones that they opened when they were kids. Establishing an account for your child early on helps them to build a financial relationship. It also encourages habits like saving, monitoring the account and building a relationship that can grow in the future.
- Give them an allowance – Set aside a small amount of money for your child or children on a regular basis. This can help them see their money grow and better understand both saving and spending.
Don’t get caught playing catchup when it comes to teaching your child/ren about their finances and their financial futures.