How to raise financially Responsible Children
Financial responsibility is the management of money or other forms of assets in such a way that it is valuable and works in the best interests of a private, a family, or a company. According to some research, you can begin teaching your children about the importance of financial responsibility as early as the age of five. Understanding how money works is one of the most crucial life lessons that children can learn. It can help them develop positive characteristics such as responsibility, self-discipline, organization, and the ability to help others.
Here are some guidelines to help you show your children how to be financially responsible.
• Tell them to make a budget.
An allowance is also a great way to teach your children about money management. Giving them money every two weeks to the youngest children, every two weeks to preteens, and once a month to teenagers. Gradually spreading out the timing will help your children understand the importance of budgeting.
• Instill in them the importance of saving.
It's natural for money to eat a hole in the pockets of the youngest children. However, it is critical for them to reap the benefits of delayed gratification. If they have their sights set on a toy or a game, suggest they forego spending their allowance on frozen dessert or another immediate pleasure and instead wait a few weeks to make the larger purchase.
• Allow them to earn a little extra.
You probably expect your children to clean their rooms, help with the dishes, and perform other daily tasks. However, consider giving them the opportunity to earn more money by assisting you in organizing the garage, washing the windows, or taking on another job that is outside of the routine. Purchasing extra work will help instill good habits and give children more control over their savings and spending.
• Provide opportunities for learning
If your children spend their entire allowance in one sitting, resist requests for more money until their next allowance is due. Negative consequences can teach us important lessons. If you talk with your kids about how to do better the next time, they'll start making better decisions.