A basic financial education will give your kids the best chance at a successful and prosperous life. Getting your kids on the path to fiscal responsibility is important, and teaching them how to manage their money will be one of life’s most valuable lessons. Here are some great strategies to help them get started on the road to financial independence:
— Save money in a clear piggy bank or glass jar. A regular piggy bank does the job, but a clear jar provides a great visual of how the money adds up when they make regular “deposits.”
— Manage your own money well. Your kids are always watching you, so if you’re a compulsive shopper or eat out on a daily basis, they will notice. If you spend your money wisely, chances are they will too.
— Show kids that things cost real money. Instead of using a credit card for all your purchases, hand them a wad of cash and let them give the money to the cashier.
— Allow them to make decisions. If they want two things, explain that they can only have one. Let them prioritize which one is more important to them.
— Don’t give your child an allowance for nothing. Pay them for jobs that they complete and do well, and they will understand how money is earned.
— Let them open a bank account. Young teens should understand the banking and saving process from a young age.
— Teach them about the risks of credit cards. They should understand that borrowing money is expensive and carrying a balance should be avoided.
— Encourage them to get a job or find another way to earn their own money. No matter what it is, any job will teach a child responsibility and the value of hard work.
Taking the time to teach your children about money now will pay off for both them and you in the long run. For information on ORT’s accounting services, please visit our website at https://ortconsulting.com/.
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