Parenting your children comes with all sorts of responsibilities – some rewarding, and some a little more intense. Like money, for example. It’s your job to teach your children how to budget and save up for the future. This could save them a lot of trouble that comes with adult life, especially those reckless teenage years.
Here’s how to prepare them.
Children won’t be able to grasp the concept of money until they have some of their own, so it’s a good idea to start giving your child a weekly allowance from around the age of about seven years old. By no means does it need to be a lot, something as little as twenty cents will do. As soon as your child is able to start earning their own money, you can stop what you’re giving them. For now, you can just give them the amount that you would usually use weekly when buying them their treats.
As your child gets into the teenage phase, you can start giving them a little more responsibility in terms of finances. This can be done by giving them an allowance to cover their clothes. Figure out how much you spend on their clothing and give them that amount, but tell them that it should last them a whole year, and then leave it up to them to manage it. If your teen ends un blowing half of their allowance in the first month – don’t give them more. They will just have to be broke for the following eleven months unless they start making their own money. This will soon teach them. You can find other ways to deal with the teenage years on kidshealth.org.
Lead by example
It’s no good trying to teach your child to manage their own money when you don’t even know how to yourself. It’s important that you sort your own financial situation out first, especially if you’re the sole provider of the family. If you’ve taken out too many loans and you’re struggling to keep your head above water – don’t suffer in silence – you’ll only make things worse. Instead, deal with the issue head-on. Sites like debtconsolidation.co give you all the information you need on consolidating your debt, which essentially means taking out a final loan to pay off all the existing ones.
Depending on how much money you give your child, will determine whether they will look for a job – you want to encourage this by all means, so don’t give them too much of an allowance where they can afford whatever they want without having to lift a finger. You want to teach your children all about how hard work pays off, resulting in paychecks, which means freedom. If they’re still quite young, then think of jobs they can do around the house, like take care of the washing, or giving the whole house a clean once a week. If they’re old enough to go out and get a job, help them write a resume and then take them to stores and restaurants and inquire about any possible job vacancies.