Teach Your Children About Money
They are your little angels and you want to do your best and give them all you can in life. However, spoiling your children and allowing them to think that money grows on trees is not helping them. One day they will have to step out into the big wide world and teaching them about the value of money will give them a head start in making their own.
Give Them an AllowanceFrom a young age it is a great idea to give your children pocket money. Even if it is just one pound a week they will soon learn that if they spend it all on Monday then there will be none left for those sweets they want on Friday. You will soon their different financial personalities emerge as they choose to save it all up for something special or spend it impulsively. This will allow them to experiment and will help you guide them as they grow up.
Make Them Earn itOnce your children are old enough to get a job it is important that a portion of their spending money comes from paid work. This will give them a reality check about what having a job is all about and the amount of effort you have to put in to make money. However, before they are able to do this you can still make them work for their money. Whether it is getting paid to wash the car or setting a up a cake stall outside the house, they will appreciate the money all the more if they have to work to earn it.
Put Them in ChargeOne of the biggest challenges when you are you are trying to teach your children about money is making them see that it isn't endless and if you have one thing you may not be able to do another. So put them in charge. Give them a budget for a day out or trip to the supermarket and let them plane how the money is going to be spent. They will soon see that if you buy the novelty donkey then there won't be enough money left money for a ride on the real thing.
Don't Give InProbably the biggest mistake you can make when you are trying to teach your children about money is to give in to their demands. If they grow up being given everything they want without having to earn it, then they will get a huge shock when they have to fend for themselves. Give them choices or make them wait so they realise that everything isn't handed to you on a plate. This can obviously be difficult at times but you will be doing them a bigger favour than kitting them out with all the latest gear.
You want to do the best for your children and although you may think giving them everything they want will fulfil this, you will give them a better future by holding back. Teaching them about money and giving them practical opportunities to handle it will give them a head start in understanding how to budget, work and save.