By Zacharias Allred
Teaching children financial responsibility is extremely necessary to help your children lead happy lives. Money problems plague many people and much of the reason is a lack of education. Teaching them is simple when done little by little every day. Here are six steps that will assist you.
1. Set a good example. Children are very aware of what is going on around them and they will start questioning some of your actions. Take using a credit card for example. When I fill up sometimes my little children will ask me why I use a credit card if they are bad. I have to chuckle at how intuitive they are. But this gives me an opportunity to explain to them the proper use of a credit card.
2. Start while kids are young. We have a tendency to put things off with our children partly because we feel they are too young. With money, you can start teaching your children when they are between 3 and 4 years of age.
3. Have a budget. Our spending overtime usually evolves into a budget system since most of us have to be careful with our money. Use this as an opportunity to teach your kids that each month you have a set amount of income that comes in, and therefore you have to be careful how you spend it. This may also help your cause when you are at the store and your child is asking you to buy them everything they see.
4. Immediate gratification? The next time your child asks for something they want, talk to them about earning the money. If it is really big like a bicycle you can tell them that you will match the money they earn. Help them by finding jobs around the house and yard but do not make it too easy for them.
5. Shopping. As a father I do the grocery shopping sometimes and I frankly do not know how my wife does it. You have to have a degree in purchasing. Add to that whining children and well, you get the idea. What I do is I take a few children with me and I tell them to find the best price on different items. You can even get them a little hand held calculator and teach them to figure cost per ounce.
6. World markets. Financial markets are a part of our lives, so you need to educate your children about them. This will go a long ways in teaching them about money because they will make better buying decisions. What is a "blue chip?" Why can the market go down in a bull market when unemployment goes down? Your children need to know.
Children can learn to be financially responsible when you as a parent start early and teach them by example. Let them be part of the solution when you are shopping and trying to make good decisions. When they want something, show them how they can earn the money with your help. Do not forget the world markets as a tool for teaching your children. Discuss financial concepts. Like me you can learn a lot as well.
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