In today’s age of luxury and consumerism, it is difficult to teach children financial responsibility. Here are some strategies for teaching our children financial responsibility.
Children mimic their parents’ saving, spending, investing and borrowing habits. Actions talk stronger than words, and financial responsibility is not taught but rather ingrained from childhood. The path begins with the toddler period, in which one must say ‘No’ more than ‘Yes’. Even if they have the money for, parents should stop providing in to all of their children’s demands. The present day generation of parents are making their children feel deserved by providing them whatever they desire.
Peer pressure becomes particularly strong when youngsters enter middle and high school. There are numerous comparisons between stuff such as parent-owned cars, holidays, and so on. Spending habits are often formed between the ages of 8 and 14, when there must be some balance in spending habits. Evaluate all of the expenditures that may appear unnecessary, and on which you might save costs.
Children should make their own decisions when shopping, but only after seeing the price tags. This allows them to recognize what was affordable and what was expensive. The money obtained by children on their birthdays and festivals is to be saved in their piggy bank, which was a usual habit when I was a youngster, and I can see that this practice has gradually but steadily lost traction among today’s children. Children must grasp the need for stability in their finances from a young age, with some permitted to be spent and the rest invested, so that they can combine joy with watchfulness.
Children in high school are focused on their higher education. Indian parents prefer not to include their children in conversations about higher education fees and costs. It is critical to include children in these discussions so that they recognize the worth of their parents’ hard-earned money and make informed college decisions based on their achievement, potential, and affordability.
When children are in college, parents should allow them to make money-related choices. Provide them a budget and let them to spend it on any college needs they require. This will help kids figure out between necessary items and will teach them to negotiate. For instance, an ear-pod that your teenager child considers vital does not have to be from the most costly brand. Parents may be able to afford to buy anything that their teenage kids want, but forcing them to stick to a budget helps them develop crucial life skills such as financial decision making and problem solving.
Motivate your teen kids to keep an expense sheet and let them determine how to spend the money they are given each month. Developing financial responsibility in children is an investment that will teach them the value of stable finances and become a lifelong habit. Talk to your children about the necessity of not being financially dependent on anybody on a frequent basis so that it gets ingrained in their value framework.
