Like most caring parents, you want to do the best for your little ones. You do your best to teach them the important things in life. But, are you teaching them how to become financially secure? If not, don’t worry about it. In this article, I will teach you how to teach your child financial responsibility. Let’s begin.
1. Be a good role model. Children do as they see. If you are responsible with money, your children will be responsible too. After all, they want to be like you. Therefore, get your finances in order now. Demonstrate financial responsibility by paying off debt, living below your means and using cash to pay for everyday expenditures whenever you can.
2. Give your children a job. Instead of giving them an allowance, make them work for it. Give them money for everyday chores. In fact, you can create a chore list that dictates how much money they will actually receive for each chore. Then, once they complete the task you can add the amount owed to their daily chore timesheet and at the end of the week, you can give them their earned payments.
3. Start a savings account for your child. Take them to the bank and explain interest charges. Then, encourage them to start their very own savings account by putting their earnings from chores in the savings account. Every month, you can show them that their money is growing. As an added bonus, you can give them a weekly or quarterly bonus deposit to their savings accounts.
4. Encourage them to set goals. You can encourage financial responsibility by encouraging your children to set short and long term financial goals and accomplish them. For instance, if your child wants to purchase a special toy, encourage them to save the money for it for x amount of weeks and as soon as they have met their goal, you can take them to the store to purchase it. You may even want to do a “special gift match” so that they can buy something extra for their hard work and effort.
5. Teach them about the dangers of debt. This can be done by charging them interst if they need to borrow money for you. In addition, take any borrowed money out of their earning so that they can feel the “pinch” of debt right away. By doing this, they’ll see that debt is no fun at all and costs big time.
6. Play financial games. There are many games like Monopoly Jr and Cash Flow for Kids that teaches the value of money. Play these games with yoru kids on a regular basis so that they can learn
7. Read books about finances. There are many financial books on the market now that you can use to teach your kids about money. To find one, go to the library or purchase a few financial kid-friendly books and read them to your child. Discuss the lessons you learned.
In conclusion, you can show your kids financially responsible by being a good role model, giving them a job, starting a savings account, encouraging financial responsibility, teaching them about debt, playing financial games and reading books to them. By doing this, your children will learn to appreciate the value of a dollar and will learn financial responsibility at an early age. Good luck!