If you have children, you already know how difficult it can be to try to put off the things they love to do or want to have. Babies want it now, not tomorrow. Leave many months later. Whether you are a young child or a teenager, they are very good at trying to spend their hard-earned money without thinking about how difficult it is in their business to earn that money.
One of the biggest mistakes you can make as a parent is giving your child everything they ask for. If you do this, your child will never learn anything about the value of a dollar.
First of all, you should probably let them have some of their own money. If a child has his own money, he will have to decide how to spend his own money rather than spend his money.
You shouldn’t give them money for anything. It would be best if you taught them how to earn this money, and usually, the best way to do this is by assigning them tasks. Young children can do easier things like take off their clothes or clean their rooms. Teens can do more with their rooms and be given to the garden, take out the trash, clean the bathroom, and clean the car, especially if they want to drive it.
Show Them How to Memorize
Once they start earning their income, the next thing you should try to do is encourage them to save some of their money. You can even open a savings account, transfer them to the bank regularly, and let them deposit their own money. Don’t try to get them to keep everything they earn, just a percentage. They need to spend a little money like you. The money they receive as gifts, such as birthdays and Christmas, should always be theirs to spend, and you should never ask them to keep any of it. One way to encourage them to save for themselves is by offering to match what they are saving. So if they put $5 into your account, you can match it by adding $5.
Give Them More Money and Ask Them to Haggle
When they go shopping and if there is something they want but may not have enough savings for the person they are looking for, teach them how to look for deals where they can find the same or something similar for much less money.
Check Your Fence Regularly
Sit down with your children regularly and check your finances with them. Take a look at the things they buy and see if you can help them learn how to spend their money smarter and how to get more value for their money. That one way to help them learn not to buy without thinking or doing their research first can also teach them to be more patient.
Don’t Rescue Your Son When the Money Runs Out
If your child runs out of money before the next exchange day, don’t bail her out! Could you not give them money? That is the worst thing you can do; you are not teaching them anything by doing it. They need to learn by making mistakes and the consequences if they spend all their money before getting paid again. If they are bankrupt, well, they have to understand that if your kids spend their money, they will only blame themselves. If there is a good reason for your bankruptcy, you can offer them a loan, but that is the loan, and they must pay it off with your provisions.
Praise Them When They Do Something Nice
Congratulate your kids on their patience in providing the money they need for something they want. That will reinforce positive feelings about saving money on your own.
Teaching kids about money doesn’t mean they sit down every Saturday morning to lecture on stock market fluctuations. It simply means including them in the daily management of the family. Have them join you when you go shopping, so that you can teach them to find discounts and bargains. This also includes involving them in family budget planning, explaining the differences between needs and wants, and letting them know why you have life insurance and why you need a retirement plan. You should also set a good example by creating a spending plan with your family. Show your kids that budgeting doesn’t have to be complicated. You can even point them to an application or a personal budgeter planner tool online, and whenever they reach their goals you have to make sure that they are praised for their excellent work.