Amongst all the things that you can give your kids, educating them about finances is one of the best gifts ever! Your kids will most probably emulate one of you. Hence it’s more than important that you beef up your spending habits. If you’re the kind of a person who enjoys retail therapy, and swipes plastic without thinking twice, chances are, your child will want to follow your footsteps. So first and foremost, ensure that you’re spending wisely.
When kids are in that pre-teen stage, they already are acting and thinking like miniature adults. Encourage them to come up with thoughts about how to save money. When they wish to buy something, get them onto the internet and make them research on various websites to find the cheapest deal. This will set the tone for the future too. When they grow up, they’ll be more analytical and will make sure to hunt around to get the best value for money deal.
Take your kids grocery shopping with you. Compare their favorite foods from different brands, ask them to check the prices, check for discounts, use any coupons and ask them to calculate the prices. You’ll be improving their maths while arming them with excellent spending habits.
Teach your kids to make do. Tell them that it’s not okay to borrow from others. One of the most important lessons about spending is that you must stress the importance of not borrowing, but spending within your means. If your child wants something that you can’t afford, sit them down and honestly explain to them. Chances are if you say that we can save up for it and buy it after two months, they’ll appreciate it more. Emphasize on the fact that buying something when you have the money for it is the right way to go about things. This is a good time to teach them about credit.
Ask them to help with your household accounts. Whether you keep your books the traditional way, or you use a software to keep your household accounts, encourage your children to keep the accounts. Instruct them how to balance your books. When you analyze your expenses, make sure your kids are around and aware of what you’re doing. This will teach them to spend their money wisely.
Wise spending habits are not too tough to cultivate. As they say, catch them young and you’ll see that your child will grow into a wise, responsible, financially aware adult whom you’ll be proud to have raised!