How do you handle money issues with your kids?
Do you give them responsibilities with their own money. Or, do you provide them with everything and one day, chuck them in the deep end of financial independence.
It seems almost logical to suggest the best way is to start them off early and let their independence grow. So, what steps should you be taking?
Pocket Money There are plenty of parents who disregard the idea of pocket money.
Oh, they’re just going to spend it on silly things. But that is that is essentially the point. Eventually, they’ll stop spending small amounts on silly, meaningless, cheap items and save for something they really want.
Essentially, by giving your child pocket money, you can show them the importance of budgeting and saving at a very early age. Independence You also want to think about giving your children a little independence with any money they save. If they want to buy something you know is a waste of money, consider letting them purchase it anyway.
Let them learn from their own mistakes rather than protecting them. Again, it’s a learning curve about how they use their finances. Proper Savings Finally, you might want to think about setting them up with their own bank account.
Doing this, they’ll feel like you trust them and will take pride in their independence. Thus they will not spend frivolously and that’s exactly what you want.
You can read more about children and finances in the infographic below.
Infographic credit: Cash Float