- 1 How to Teach Your Kids to Be Responsible with Money
- 1.1 Encourage Savings
- 1.2 No entitlement mentality allowed.
- 1.3 Make it grow.
- 1.4 Show Them Things Cost Money
- 1.5 Teach your kids about money from objective reality
- 1.6 Avoid Allowances
- 1.7 Don’t Impulse Buy
- 1.8 Teach to Give
- 1.9 Teach Contentment
- 1.10 Money doesn’t equal happiness
- 1.11 Wealth brings privilege.
- 1.12 Any child can strike it rich.
The importance of teaching your children how to be responsible with their money is a life lesson that is extremely underestimated. If your child grows up without any boundaries, then they may find it really hard to cope when they are adults, which could lead to them ending up in serious financial issues and could lead to them being very unhappy adults. Being slack when it comes to money responsibilities is definitely something you shouldn’t risk. To help you, here are some ways you can teach your kids the value and responsibility of money.
How to Teach Your Kids to Be Responsible with Money
Getting a piggy bank and teaching your kids how to save money is a great idea.
For younger children, having a more visual method of saving, such as a clear jar, can be more effective as they can actually see their money grow before their eyes.
Talking through savings with your children and developing a goal or aim for them to work towards is a great start to teach your little one’s responsibility.
No entitlement mentality allowed.
It’s okay to help your children out financially, but giving them every dollar for everything teaches children to have an entitlement mentality.
Help your children out, but encourage them by the age of 15 to find a part-time job to teach them they have to earn money and not just expect it.
Make it grow.
Teach your kids how to make their money work for them.
Teach them that money is a dynamic medium of exchange for goods and services that should circulate and grow.
Teach them that saving is good, but finding ways to make their existing money grow is even better.
Teach them that the best way to make more money is to find problems to solve.
Show Them Things Cost Money
You can tell your child that something costs a certain amount, but teaching them physically is far more effective.
To do so, get your child to hand money to the cashier when you go to a store to purchase something.
Whether it’s a larger shop or an individual item for themselves, getting them to hand over money and explaining the change you may receive in return is a really great way to teach children the value of items.
Teach your kids about money from objective reality
It’s a nice thought to say everyone, regardless of financial status, has access to all the good things in life.
It’s also naïve and untrue.
Explain how a small percentage of the people own the majority of the wealth, and that most people settle for less than their share.
This isn’t an elitist way of thinking.
You’re teaching your kids to see the world through the eyes of objective reality, the way society really is.
When a child gets an allowance, they don’t learn that they need to work for their money because they know they are guaranteed that money every month.
Instead, get your child to work for their money.
Encouraging them to work on a commission-based system can help develop their drive and work ethic.
Once they get into it, they will see that the more they work, the more money they have to buy and do things with.
Don’t Impulse Buy
If you start this, it can be hard to stop without a host of tantrums and mood swings.
This can get harder as children get older because they learn what to say to get what they want.
Encouraging your child to spend their hard-earned commission on certain items is extremely beneficial.
It makes them think how much they actually want it because they have worked hard for it.
If they are indecisive, let them know that there are ample free samples available online on offer with some companies.
This shows them that they can try before they buy.
Teach to Give
Once your child has made a bit of money and they are doing well for themselves, start to encourage them to give.
Get them to pick a charity or a church, something they know about, so they will be more enthusiastic about helping them out.
Eventually, they will see that giving is just as good as receiving.
As children develop into teenagers, they tend to spend a lot of their time staring at a screen.
Every second they spend online, they get a look into the lives of their friends, celebrities, and even random strangers.
Once they start to see everyone else’s life, they get lured into comparing everything they do and own with other people.
Contentment is found in the heart.
Talking to your teens and letting them know that image isn’t everything, is a really beneficial lesson.
Being content is a fantastic trait to have and is extremely important when it comes to being financially responsible.
Money doesn’t equal happiness
Teach your kids that having money won’t make them a better person; it just gives them more opportunities.
If you’re not happy without money, you’re not going to be happy with money.
Wealth brings privilege.
Right or wrong, wealth offers privileges, and the sooner kids know it, the more likely they are to do something about it.
When you dangle that carrot in front of the rabbit long enough, he’s going to find a way to get it.
Any child can strike it rich.
Above all else, the most important belief parents can instill in their kids is that they are smart enough to earn all they desire.
Regardless of their education level, IQ score, or performance in school, they have everything it takes to become a millionaire.
No sweeter words were ever uttered from a parent to a child than “I believe in you” and “you can do it.”
Responsibility is something that develops with age.
Teaching children any kind of responsibility takes time, patience, and encouragement, but the results are always worth it.
When your child understands that money doesn’t grow on trees, they are more likely to look after themselves better as adults and will also learn that money doesn’t buy happiness.