Thursday, January 11, 2018

Lessons To Teach Your Kids About Money

Of all the life lessons you can teach your kids, managing money is possibly the most important. It’s something that isn’t taught in detail at school but could be extremely valuable to them as they reach adulthood. To teach your kids about money, you’re going to need to set an example.


Take a look at some of the most valuable lessons to teach your kids about money below.

If you want something, you need to save for it 

Learning how to save is a valuable lesson. With so much emphasis today on having things ‘now,’ it’s no wonder that so many people get themselves into debt so easily. Teaching your kids to save for things that they really want, such as their saving their allowance for a new game or item of clothing can teach them a lot about the value of money later on. While this might involve saying ‘no’ a lot, there are some ways you can say ‘no’ without actually having to say it.

Learning how to budget 

Budgeting is a useful skill to have, particularly when you have a family. Even if you’re comfortable, it doesn’t hurt to have a budget that allows you to account for your outgoings, your savings as well as what disposable income you have left. Teach your kids what it takes to manage an income, starting with their part-time job. It also helps to demonstrate more frugal behavior around your children so that they can learn habits that will save money. Try not to adopt any wasteful habit that they could carry with them into adulthood.

Managing debt responsibly

Debt can be inevitable, especially when it comes to buying a car or large purchases for your home. While you can teach them how to avoid debt through saving and budgeting, there will be times where they may need to deal with debt. By handling your own debts responsibly, you can teach them some great lessons. Rather than flaunt the use of credit cards or store cards, teach them how to use them responsibly. Remember that if you do struggle with your own debts, there are debt settlement companies that could help you to get your debts under control. Rather than letting your debts get the better of you, finding solutions for clearing them will set a great example for your children.

How to find a great deal 

Whether for convenience or laziness, many of us are guilty of accepting the first offer. However, the possibilities of the internet mean that you can save money on almost everything you buy. From flights to insurance, help to teach your kids how to find a discount online. Once you get into the habit of it, it becomes simple to find a great deal online and a great lesson to pass on to your children.

Teaching lessons about money is important, especially as they head off to college or start work. Show them a good example by managing your own finances responsibly and help set your kids to learn what it takes to shape a secure financial future.

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