When bringing a child up, it’s important to show them how money works from an early age. If you don’t, your children will assume that there is an endless supply of it (if only!) Now by no means do you want to worry them, but you just want to make it clear that you only have money because you work very hard for it every day. As your children get older, you can go into a little bit more depth, and so on.
School age and pre-teen
Around this time you can start setting easy chores around the house, like tidying their room. This will show them what having an incentive is like. They know that if they want a couple of dollars, they have to get the task completed first. As they get older, you can make the chores a little more advanced, like doing the washing, or mowing the lawn.
This is the stage where you should be encouraging them to go out and find a job. This will not only help with their social communication and interpersonal skills, but it will give them a taste of what the big adult world is like. Help them write a resume and then have a day handing it out to local stores and restaurants in the hopes that someone will be looking for extra help to work for them on the weekends. Your child will never forget their first payday, and although you want to teach them how to manage their money, it’s an unwritten rule that they can spend their first paycheck however they choose.
Now they’ve had their first splurge with their own money; it’s time to talk about how to budget it. It’s still important to feel as though they can touch what they’ve earned because at the end of the day it’s theirs. But it’s about figuring out how much of it they need to keep in order to get by. This is where the tough love comes in, because they will most likely have a moment where they get overexcited and buy that expensive gadget or those designer jeans. Yes, they could afford them, but now they’re left with nothing, and they will surely be asking you to lend them some money until next week (or next month). – Don’t. In the real world, it’s not that simple, when you spend all of your money – it’s gone.
The time will come when your baby grows up and is ready to leave the nest and go off to college. It’s completely normal to worry as you’re the parent and you always will, but you’ve done your part, and now it’s up to them to use your lessons so they stay out of financial trouble. One last thing that you can do is to consider studentcredit.cards. These are made to help students establish a good credit history, while teaching them how to use credit cards responsibly. Which is ideal for when they go off to college and are faced with all sorts of financial demands.