Teaching kids the importance of money management is the job of parents; though it would be amazing to see schools implement a program in which students are taught the importance of financial responsibility. Learning to balance a checkbook, manage their credit and debit cards, manage their credit report and remain debt free are amazing mathematical skills that could only improve the way that youth grow up and live their own lives. Learning the art of proper financial handling is a skill that not everyone remembers to teach their kids. After all, this is something that begins at home. By making sure you are setting a good financial example, you’re already teaching your kids a valuable lesson. Here are a few other important financial lessons your kids could learn if you only take the time to implement them at home.
Let your kids help at the store
A great way to show your kids how to become financial responsible is to allow them to practice. Give them a list of things to buy and then take them to the store. Give them the money it costs to buy it and then help them figure out how to buy what they need while staying in budget.
Create a budget
Your kids might make only a few dollars allowance a week, but that doesn’t mean they’re without a budgeting need. Teach them to budget their money so that they can always have enough for things like lunches, fun and savings.
Pay your kids like an employer
If your kids do work around the house for an allowance, teach them the importance of managing their money between checks by giving them their allowance on the same days every other week or whenever you give it. Do not give it early. Do not give it in advance; make your kids learn that if they do not manage their money well between paydays, they will not have any. It’s a good way to teach them the importance of budgeting properly. Wouldn’t you rather they miss a day of fun with their friends now for mismanaging their money than a car payment later in life?
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