A lot of adults end up struggling with financial issues because they never learned how to properly manage and save money. If you have kids, then you’ll want to take the time to begin teaching them how to manage money at an early age. Doing so can help diminish the risk that they will make poor financial decisions as adults in the future. The following are a few ways to teach your children about money:
Show Them Your Budget
Show them where your money is going. This will help them understand how the majority of your money goes towards bills and why being careful with your money is so important. Explain your budget to them and they’ll also be less likely to get upset about not being able to get the toys they want all the time since they’ll realize that money doesn’t grow on trees.
Help With Your Grocery Shopping
When you go grocery shopping, put them in charge of your grocery list. Make sure that they see how much each item is before you put it in your cart or basket, then once you check out, show them the total cost. This will give them an idea of how things have value and how much you spend just on groceries. You can even spend some time clipping coupons with them to give them an idea of how saving money can allow you to fit additional items into your grocery budget, such as a treat for your kids.
Earning Money Of Their Own
Instead of just giving them an allowance that they can spend on whatever they want, provide them with ways that they can earn their allowance, such as by washing the dishes or taking the trash out every day. This will help them understand that in order to earn money, you have to work for it. Money will have more value to them as a result, which means that they’ll be more likely to save their money than to spend it all in one place if they had to work for it themselves.
Teach Them To Save
There are several ways that you can promote the idea of saving up. For example, you can set up a family coin jar where everyone drops their change into. At the end of the month, you can count up all of the coins with your kids, thereby showing them how much money they ended up saving just by putting their loose change in the jar.
Another idea is if they want to buy something that’s expensive, such as a new video game or a new video game system. If it’s going to take them a very long time to save their allowance to be able to pay for it, then give them some incentive to save. For example, give them goals each week or month. If they meet those goals, such as saving a certain amount, you can offer to match that amount. This provides a real incentive for them to save and teaches them how to be patient with their money.
By teaching your kids how to use, manage and save money, they’ll be more prepared to live a financially responsible life. They’re going to be especially thankful for having learned how to manage money once it comes time for them to apply for a mortgage so that they can buy their first house. Now that interest rates are as low as they are, you might want to consider investing in a new home yourself. To pre-qualify for a mortgage, contact us at Tidewater Mortgage Services today.
