Starting your children off with a right view of finances is
so important these days - especially when debt seems to be a
common way of life for so many. Who knows if the young
parents of today were ever taught such a vital lesson in
life as being able to properly manage their finances.
Perhaps their lives would have been so much different. We
can never know - and can never change it. We can, however,
change the way our own children look at money. Here are some
important lessons to teach your children about such an
important subject - their money.
1. Money Does Not Grow On Trees
Children do not understand, at least not at first, that
there is not an unlimited supply of money at the bank, or on
the credit card. If they see something they want to buy, you
will often hear "Why don't you put it on the credit card?";
or, "Write a check!" To them, who only see you pay for your
purchases in this way, they do not understand that you have
to pay for it sometime. Explain to them the process that
they can only buy what you have money to pay for -
somewhere.
2. Saying "No" To Some Unnecessary Things
One of the most valuable lessons a child can learn is to
willingly choose to say "No" to some purchases - even if
they want it. One of the greatest incentives a child can be
given to do this is because something better can be obtained
if they will save a little longer for it - and wait. Do not
give them money every time they want it - this teaches them
that there is a bottomless supply - when there isn't.
3. It Is Important To Save
Besides saving for something that they really want, which is
a good reason in itself, teach them to save for unexpected
things. For instance, if they receive a regular allowance,
or, are working after school and earning some money on their
own, teach them to put aside a regular percentage - say
10-15%.
4. Comparison Shopping
Let your children know that there is a vast difference in
the quality of similar products. There is also more than one
place that sells most items, and somewhere there may be a
better deal. Show them that by looking around, and waiting a
little longer, they may be able to get the item they really
wanted, and be able to have a little money left over.
5. Establish A Budget
Once your child is receiving a regular amount of money, you
will want to show them how to plan for a wise use of that
money. Help them to know how to set money aside for
basically three different things: money to spend now, money
for special purchases that require savings, and long-term
savings.
6. Teach Them About Credit Cards
Credit cards and checking accounts are similar in that they
provide ease of purchase, but without the necessity of
carrying cash. Your children only see you handing over the
plastic, or another piece of paper. But they never see that
cash is involved - it is behind the scenes to them. Show
them how that you must pay monthly for both and that you
should never buy more than what you can afford - except for
some larger purchases - because the bills for it will come!
7. Give Regularly To Good Causes
Probably one of the greatest joys that a child can have in
the use of their own money is the joy that comes from
willingly giving their money to causes greater than
themselves. By learning to give some of their money often to
causes such as their church, or a charity, they learn that
their money can be a blessing to others, and it will prevent
a stingy and selfish outlook on life and on their money.
Joe Kenny writes for
CardGuide.co.uk, offering
UK
credit card comparison, visit them today for more
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