Teach Kids To Be Smart With Money
While many would agree that everyone has their opinion on the state of our current economy, some would also agree that spending habits have also gotten many into a bad situation financially. Living above ones means is so common place today, but when a change in shift with the economy causes job losses, people don’t know what to do. Is this an endless cycle that is passed on to kids so that they too grow up thinking that credit cards and loans are the way to a lifestyle of material possesions?
When kids see their parents swiping the all powerful credit card for whatever they need, it gets engraved in their heads that the card is the solution. If you have kids and aren’t careful to train them properly with money, you may be in for a big suprise, or a big bailout as they get older.
One of the first things kids need to know is that money does not grow on trees. But rather that a job is what pays the bills, not credit cards and loans. If you do use credit cards to pay for things, make sure to show your kids the bill when you get it in the mail. It hepls them to see accountability which is something that is lacking in todays society.
If you give your kids an allowance you should consider limiting it to a specific amount per week with no additional money. This will help them to budget the money since they know if it is all spent they have nothing left till next week or next month.
Help your kids to see the value in savings. Even at a young age, start them off by saving money with a piggbank. This will impress upon their minds that once again, saving money can help them to buy what they really want once they actually have the money.
Remember, kids learn from example, so if you are not setting a good one with finance and money for them, who will?