How To Encourage Good Financial Discipline In Children*
Sooner or later when your children grow up they will be trying to gain their independence. Moving into their own place and living their own life is what the stereotypical subjects are when talking about this with them. However, everything they do and you do, revolves around finances. This is why they should be learning about economics in some form as they are growing up so they can understand that monetary value is important to everyday life. For them, their biggest worry will be providing everything for themselves by themselves, with no outside help from anyone. Financial discipline is something that has to be taught to children if parents want them to succeed on their first try. On the other hand you remember when you were a child and you had your first taste of money in your hand. You were more concerned with spending it than saving it. So your teachings must rival their innate urge to be reckless, which means giving them real-world scenarios.
Walk them through it
The next time you are doing your taxes or when you are getting ready to pay your bills, sit them down and talk them through it. Get out your previous statements for your lighting or heating bill, and explain to them what the form or document says. They’ll learn about what the hourly rate for utilities is, how long the household had used them and how much the bill has come out to. Once they can see the figure, it’s a good idea to show them how much money it takes to pay the bills. Take out some notes from the bank and place them on the table when you are doing this. The visual representation will help them to see what it takes to keep them living comfortably.
Take them shopping
When kids grow older they don’t want to be seen with their old parents in public. It’s embarrassing and uncool in the youth culture. That’s fine, but taking them shopping with a life lesson included is essential. When you and your children arrive at the store, give them a budget. Give them a list of basic food items too, and allow them to help you complete it. Soon they will realize that junk food is a luxury and after taking care of the essential, there is very little left in the budget to pay for such items.
Getting out of it
You don’t want your children to be fearful of spending money either as the great things in life are never free. One way to help them get over this fear and being overly frugal is showing them a way out when things go wrong. On https://repair.credit/best-credit-repair-companies there is a list of credit repair companies that will give you advice on how you can pull back and reshape your finances. Your credit score can always be salvaged if you know how to cut back and make the right payments to creditors.
Parenting isn’t just about feeding and clothing your children, it’s also about giving them life lessons so when they are older they can fend for themselves. Instilling financial discipline is something every parent should do for their children.