Teaching Children Financial Responsibility – 6 Tips

Children need to learn financial responsibility because we live in a money centered society. Without this skill your children will flounder. Financial irresponsibility affects most areas of our lives from marriage to buying a home. Here are some ideas to help you.

1. Set an example. Your kids watch you all the time. One day when I was putting gas in my vehicle my 5 year old son started to lecture me about using credit cards. You probably use some kind of card also when you fill up at the tank and yet like me you have most likely told your children that credit cards can cause many problems. Credit cards are tools but like a hammer they can cause damage if used incorrectly.

2. Start when your children are little. As soon as your children can ask for a piece of candy they are ready to start learning about money and financial responsibility. You can take a few extra minutes and kneel down beside them and show them the different markings on coins and bills and how they relate to price tags.

3. Have a budget. Our spending overtime usually evolves into a budget system since most of us have to be careful with our money. Use this as an opportunity to teach your kids that each month you have a set amount of income that comes in and therefore, you have to be careful how you spend it. This may also help your cause when you are at the store and your child is asking you to buy them everything they see.

4. Delayed gratification. When your child sets their heart on something they really want sit down with them and develop a plan for how they can earn the money. If you just give them what they want every time they have a notion your children will not learn the value of money. Teaching children to learn while they earn is a gift from you to them.

5. Take your kids shopping. You are probably already doing this so give them something to do. Show them your shopping list and as you go down the isles have them help you find the best price on certain items. You will be amazed at how good they can be at this and your children and you will find more joy in shopping.

6. Stock market. Whether you know it or not you are investing in the stock market. If you have a savings or checking account then right now part of your funds are invested everyday. Get some books from the library or use the internet to start educating your children about the world markets. So many things are in the news and your children will become very money savvy.

Teaching children financial responsibility will pay huge dividends down the road. There are many benefits for you also because your children will become more appreciative of you because of all you do for them. Tell your children that it costs between $100,000 and $150,000 to raise a child to the age of 18. Help your children by delaying immediate gratification and setting a good example. Educating them about the stock market is an excellent way to teach them also.

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