It’s likely that your children don’t really have any concept of money because everything they need is provided for them by you, their parent. Even with items that they want like a new toy, or even a day out at Peppa Pig Land, the cost of everything is unlikely to enter their minds – and why should it? At a young age, children shouldn’t have to worry about how much things are costing you, or even worry about anything to do with money. However, it is important to begin introducing money handling into your child’s life so that when they are old enough to fly the nest, they know how to handle their finances and can avoid getting themselves into financial difficulty. Take a look at these easy ways of teaching your children how to handle their money.
Show them how to get out of debt
While you don’t want your children to ever experience the crushing weight of debt on your shoulders, once they’ve left home there isn’t much that you can do to prevent this from happening. With it now being easier than ever to get into debt, it’s important to teach your children how to get themselves out of debt as well as good money management. Make sure they know that getting out of debt isn’t a walk in the park, and it will take strict rules and dedication to bring yourself out of a slump in money. You should also teach them that companies like national debt advice can give them financial help with their debt problems and offer a service that can reduce what they owe by up to 85%. Take a look at how else they can help:
- They will take on responsibility of handling the companies that you owe, so you can expect the harassing calls and letters to stop.
- They will take into consideration your earnings and work out an affordable repayment plan.
- It doesn’t involve you taking out more loans, so your debt won’t be increased.
Teaching your children the right steps in getting out of debt will prevent them from falling in too deep in the first place!
Start good habits early
No matter how old your children are, teaching them good habits with anything to do with life can never be taught too early, and that includes money handling. A common and proven to work method is to save a certain percentage of your paycheck each month. So, if they were getting say, £5 a week in pocket money from chores, have them give you £1 per week to put away into a savings fund. This habit will teach them to put away money each month so that if they desperately need money fast for a repair bill, or they simply want to save for something, then they’ve got the ability to do so.
Allow them to pay for things they want
While it’s understandable that you don’t really mind paying for that toy they’ve had their eye on, it’s important to teach your children that everything costs money. So, if they were to ask for a toy that was £30 but they only have £10, you can teach them that saving their pocket money for the next month will allow them to buy that toy. Allowing them to spend their money will teach them that you don’t have to buy absolutely everything that takes your fancy. It will teach them to think about their purchases before making them too.
Teach your children value
One thing that many kids around the world don’t realise is that all of their nice things in their life probably cost their parents quite a bit of money. While you don’t want to drum into them how much everything they own has cost you, it might be a good idea to keep reminding them to take care of their belongings because if they become broken, it will cost too much to keep replacing. The idea of losing out on one of their treasured belongings should be enough to teach them how to take care of the things that they’ve got.
Educate them about clever purchases
Finally, it’s also important to teach them about buying smart. For example, if they’ve saved all of their money to buy a PS4, and when it comes to purchasing it you notice that if they save for another 2 weeks they will get a bundle of games with it, it’s a good idea to prompt them to rethink their purchase. Encouraging them to get the most out of their money will make them think more with every purchase that they make.