It can be challenging to budget each month and still have cash left to enjoy, and save, especially in a busy family home. However, for a young family to thrive, and maintain financial wellbeing and security; it’s a skill that parents need to be adept at, and pass on to their children. Young minds are impressionable, and like little sponges; therefore, the life skills you show them, will sink in and help them in their future adult lives. The sooner you teach your little ones skills with budgeting and saving their money, the better they’ll become with financial skills.
Consumerism is only growing stronger, and there are more ways to shop and spend money than ever before. Therefore, you’ll want to equip your kids with as many money skills as possible before they head out, to study, work, and take on adult responsibilities. The following are some tips and ideas on how to begin influencing your children and their long-term financial choices, so they too can enjoy a secure and comfortable future.
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Lead By Example
The best way to influence your little ones is to lead by example. Your kids will constantly be soaking up what you do and mirroring their parent’s behaviour, even if they don’t realise it, so become a great financial role model for them. Explain how your household bills work, and the reasons that you go out to work; ensure that they can grasp the idea of generating an income so that you have the means to pay for life’s essentials.
You may have taken out a loan for your home, or still be juggling student debts; you can check out sites like cashloans.co for ideas and information on working out the correct repayment plan for your family. You can pass on the knowledge about budgeting your monthly outgoings to older children and teens, so they understand how all borrowed money has to be paid back. Educating your kids on how and why adults spend their income, will ensure they’re financially savvy when it comes to leaving the family home and setting out into the big wide world.
Give Them An Income
A great way for your kids and teens to learn how to budget is to let them put it into practice while they still live at home. Providing weekly pocket money, or a monthly allowance, in exchange for jobs and chores will reiterate how they can earn in the future. If they want to buy something in particular; encourage them to save their own cash so that they can buy it themselves. Working towards something they want, saving successfully, and eventually going to buy it will give them plenty of positive associations with saving money, and ensure they continue their good habits into adulthood.
Set up a bank account for your kids and go through their monthly statements with them. Children and teens will soon get to grips with how and income, savings, interest, and spending will work on a larger scale in the future. Providing your kids with enough information regarding finance will make sure they make smart decisions when it comes to cash in the future, and won’t be coming back to mum and dad (all the time) for handouts and loans.
