If you are a parent, then it is very important for you to understand the importance of talking to your children about money early in their life in order to prevent them from making costly financial blunders in their adulthood. There are many instances where you have seen the young people after their graduation move to their parental home and mishandle the cash that they earn. More than 40% of the US graduated students still receive financial assistance from their parents and more than 32% of the young adults aged between 18 and 30 live with their parents. Teaching budgeting early will help children save money in adulthood.
In order to avoid falling into the financial burden at a young age, it is always better for you as a parent to teach your kids about money and the ways to save it at a very early age. Any parent not interested in supporting their children when they reach 28 to 30 years, must start to teach them about money when they are 3 to 4 years old.
Teaching the children about money and the ways it can be utilized will help them become a very good money manager at the college. They will know the importance of paying the bills easily and ensure that their paycheck lasts till they get a new one. They must be taught at the tender age that money is finite and hence needs to spend it carefully.
It is important for the child to experience budgeting lessons and experiences at a young age so that they understand that money is finite. They should be making sure that the child should have to live with the decisions that he or she makes and must not expect their mom or dad to come and bail them out very time. If you are looking at more Lessons In Personal Finance, then do not hesitate to Click On This Link.
As the child gets older, the pocket money that you give will also increase. It is important for the children and the parents to carry out meetings from time to time to discuss on how to allocate the pocket money to cover the child’s expenses.
The following are some of the ways to teach your child on how to budget.
Persuade teens to find jobs
It is not a bad idea to encourage your teenage kids to find a part time job after school hours to get into the habit of earning. They can learn a lot by doing jobs and this will also give the drive to spend wisely, as it is their hard earned money.
Take them with you while shopping
Take your young children with you when you are going for shopping. Teach them about the ways to shop and make them understand the price differences between a branded product and the local one. Also, explain to them as to why you are buying a particular product. This way they will understand the right concept of shopping and how to save while shopping.
Never bail them out
If your son spends the pocket money you gave for a new pair of jeans, then do not bail him out by giving more money to buy the shirt. This will help them to learn how to live with the money they have.