Things You Should Teach Your Children About Money

By Author: Arond Devit
Total Articles: 14
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Debt still seem to chase us until we take respite in a debt management plan but undoubtedly the debt relief process is not an enjoyable one to go through. Anyways we got to get out of this financial rut that was partially a result of federal financial failure and our individual lack of money management skill and more importantly, we ought to teach our children about how to avoid any kind of financial crisis. Firstly we have to make them realize that savings is important and can actually be fun if they want to enjoy the greater pleasures affordable by money. Even a pre-school child should be able to understand the concept of saving for a goal. If you make a game out of saving the concept will be more readily accepted by a child. A fun piggy-bank, a sticker chart for every saving goal met, or a parent matching the funds set aside are all great tricks to help the child warm up to the idea of saving instead of spending. Next your child needs to know that needs and wants are not the same thing. It’s difficult for a child to distinguish between what they want and what they need. If we’re ...
... being honest, it’s difficult for a lot of adults as well. Start from an early age talking through the difference with your children. When they ask for something it’s a good opportunity to rehearse the difference between what may be fun to have but isn’t necessary and what they really need.

Kids tend to think if you use a credit card or a debit card that the money is limitless. Explain to your children in detail how the credit cycle works. Make sure they understand the idea of borrowing money now and then having to pay back more than they borrowed later because of interest. You can teach these lessons in simplified ways to a young child and gradually add more detail as the child gets older and is better equipped to understand. Remember that children are not natural hard workers (at least not the ones I know) and will often go to great lengths to avoid work but still expect the rewards. It’s essential to instill the basic financial principle of a good work ethic in your kids to equip them with the skills they will need to earn sufficient income throughout their life. Chores and other household tasks are a natural way to instill that value in your children. The concept of earning related to working is also a great opportunity to reinforce the idea of education and its effect on their financial future. A 10 year old is more than capable of understanding the difference between your earning potential with a high-school diploma as opposed to a college degree. Research has shown that most adults do not use a budget. One of the primary reasons they give for not using one is that they either don’t know how or think it’s too complicated. But actually kids will make surprising choices when they are equipped with the information to participate in the budget process.

Keeping these points is mind one should precede with the good deed of teaching their children about money which can either make or mar their life.

Aronddevit is a Journalist who writes on various Debt settlement and bankruptcy related financial articles.Get to know more about the related topics from http://www.bestdebtcare.com