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Mom guide: Teaching your kids financial responsibility

No parent wants their child to grow up fiscally irresponsible. All parents want their kids to be smart with money so that they can achieve good things in all of their future endeavors. This is a very important thing to teach your kid from a very young age. This also has a ton of practical applications for them, not only now but in the future as well. As with any other behavior you would want to teach your child, the best method of doing this is by being the perfect role model. We have curated a list of ways to help you teach your kids financial responsibility.

Talk about money with your child

Talking money with your child does not mean passing off your adult money-related stress on your kids. It is a smart move to talk to your kids about the budget that you have for the entire month. Teach them the value of budgeting and paying their bills before spending money on something lavish. If we spend money first on non-essentials, we will have trouble paying our bills for the entire month. Give your kids an explanation of the cost of living. The value of money does not lie in how much stuff you can collect, rather, it is the security that money can provide.

Teach them the importance of hard work

The best thing that you can do is set up a debit card for your kids in order to teach them the value of money. There are special debit card for teens that can be set up with an app, where they can actually earn money through doing their chores, among other things. This will teach them the importance of every penny they earn. Giving them a glimpse of working to earn a living can do wonders for them in the future.

Give them real money to manage

Real life lessons are the best way of getting your kids to be fiscally responsible. Take your kids out for small shopping trips. Give them the money to handle, telling them that it is their responsibility to pay and count the change. This will teach them to be confident in their spending. For example, give them a holiday shopping task for your relatives. Give them the maximum and the minimum amount they should spend, and see how they do it. You can always guide them through this, but first wait for them to make their own choices.

Match their savings

A lot of parents use this golden rule to teach their kids about financial responsibility. For example, let’s say that your kid is trying to save up for their first car. They have a job and have been fiscally responsible in saving their money for that car. If you help them match their savings in buying their car, they will understand the rewards and benefits of paying bills first and then using the extra money to buy things. This can even pave the way for you to talk about good and bad credit.

Teaching your kids how to handle money from an early age is very important for their future. Use these tricks and tips to help your child become a financially responsible adult.

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