What’s the one talk kids try to evade from their willing parents? Well this isn’t that talk but it’s just as important. Get your kids around the living room and get them into the money talk. Now that’s something they can really use in the future. Since you won’t always be around, you might wanna pass down on your kid your secrets on how to be good with money.
Some people think that teaching their kids early on about money is bad. This is because money is supposed to be an adult’s problem. But your kids don’t necessarily have to face money problems when they grow up to be adults. If they learn from you while they’re still young, they have a better chance to achieve stable finances later on.
If you had the chance to tell your kid about the essence of savings, will you take advantage of that chance? Suppose your kid got some cash from his grandparents. You take him to a store, and he wants to spend it all on an action figure. What do you do?
Like any other value you want to teach your child, personal finance is just as important, and probably the most practical. You only have to teach them the basics of finance – how to budget, the importance of a piggy bank, and of course, self-discipline.
Teach your kids to account for their spending. People who are financially irresponsible usually don’t know where their money went. And don’t fix their deficit for them. Instead, let them learn how to budget their allowance the hard way.