How Do I Prepare My Children to Be Financially Responsible?
The financial education of your children should start early. It should be a part of everyday life. The best way is to teach by an example. Here are some tips you can follow.
Many parents have some reluctance when it comes to talking about money with their children. Start slowly introducing every day small financial decisions, simple financial terms and cost of their favorite things.
Talk Values, Not Figures
Explain a value of money. How many hours to you have to work to be able to buy a loaf of bread, milk, everyday items.
Take Your Children Along to the Bank
Let them experience the role your bank plays in your financial life.
Pay with Cash Instead of Credit Cards
Encourage them count the money and calculate the change.
Discuss with Your Children That Things Cost Money
Talk openly about how much their swimming lessons, hockey training, games they play cost.
Comparison Shop with Your Children Present
Show them how to save money while shopping. Let them find the cheaper box of cereals or favorite snacks.
Show Them the Value of Savings
Teach them how money can grow and compound over time to meet future goals and needs and let them learn how time will be on their side when saving.
Create Learning Opportunities
Educate them on how making small adjustments to spending habits create bigger and better opportunities in the future.
Set Family Goals
Planning simple family goals together like a vacation will teach them what it takes to make things happen.
Open a Savings Account for Them
Encourage them to put their allowance, gifts from grandparents, family friends and summer jobs into a savings account to learn responsibility while watching their savings accumulate over time.
Do it together and have fun.
Posted By: Halton Wealth ManagementPosted on November 01, 2019.
Posted in Blog