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Teaching Your Children about Financial Management

Mon, Sep. 11, 2017 Posted: 07:15 AM


When you run a Christian household, there are many values that you will want to teach your children about as they get older. However, it is also important to ensure that you teach them valuable practical skills, one of which is effective financial management. Experts believe that financial management should be taught from an early age, as it means that your children will be more prepared during adulthood.

Your kids will have a lot to cope with when it comes to finances so the more they learn about managing finances, the better it will be for them. Everything from teaching your kids about sensible spending through to helping them find the best student loan consolidation companies to reduce student debt can prove invaluable when it comes to money issues.

Tips to help you teach your kids

There are various methods that you can use in order to teach your kids about financial management in order to stand them in good financial stead for the future. Some of the effective solutions you can use include:

Talk to them about where money comes from: Kids sometimes literally think that money grows on trees. They don’t realize that it is something that you have to work hard for and that you go to the bank to get the money out. You should therefore take time to explain the process of how money is earned so that they realize it is not something that just appears but has to be earned through hard work.

Teach them to manage their pocket money: Giving your children some pocket money and ensuring that they use it wisely is another great way to teach them. You have to be firm and once their money is gone they have to wait for the following week before they get anymore. Don’t give in and give them extra if they overspend and run short, as this will do nothing to help them in the future.

Teach them not to impulse buy: For children, it is tempting to rush out and make impulse purchases as soon as they get their pocket money. You should teach them the importance of waiting before they spend their money and why they should spend it something they really want.

Encourage them to save: You should also encourage your children to save money. You can provide them with an incentive by opening an account for them with a small amount of cash in. Then, encourage them to save toward something they really want by putting a portion of their pocket money aside into the account each week or month.

Let them help you: It is also a good idea to get your children involved in helping you with the household budget. Even if they just sit and watch what you do and why you do it, this is something that will help them to learn more about money management.

By taking the time to teach these skills to your children, you can help them to avoid financial problems in the future.

Lisa Brooke