I hope you will teach your children good manners, positive values and healthy eating. But do you teach them how to get financial security? Do you know what to say about money?
While children learn algebra and science, most children do not learn financial literacy at school, although money management is an essential skill they will use daily in adult life. That's why it's so important that parents teach children and boys to manage their money responsibly.
Children make money with gifts and pocket money. As a high school student, it's time to help them understand how credit and debit cards work and learn more about financial education. Get a current debit card, and you'll be surprised how motivating it will be. Having a debit card not only simplifies things for parents but also gives children more independence, and now they want to know more about money management. The current makes it easy for them to save.
Here is some useful tip for teaching your child to manage his money responsibly.
Many parents do not feel comfortable discussing their financial situation and decisions with children, but children need to learn more about spending, saving, lending and investing in the home. Use everyday situations to teach children. Share how to save and budget for a family vacation or how to negotiate a better deal when buying a car. As their skills improve, they will be challenged to participate in their finances actively, for example, search online for a more convenient mobile phone plan, calculate the monthly cost of owning a car or search the best offers when shopping in a store.
Creating a budget and sticking to it is an important lesson to learn soon. Set a budget with your child and include the income from your allowances and money earned in jobs and tasks, as well as your expenses, such as paying for your cell phone or going to the movies and helping them set their savings goals for higher costs. Meet with your child every few weeks and tell him how important it is to track his expenses and keep his budget.
Help him set realistic financial goals, whether it's saving for a new tablet or college funds. Create a written plan to help them achieve their financial goals by taking measures such as saving a certain amount of the monthly allowance or finding new ways to make money to reach their goal.
Give your child the right tools to understand financial education. Many tools make it easy for young people to understand budgets, savings and investments. I recently received my son's first debit card. I chose Current because it combines a free debit card with a mobile application. Through the app, you can transfer money to the card. One of the most valuable benefits is that you can automate tasks in a few clicks and have the ability to define and reward tasks. You can set up cost control, and the app sends real-time alerts when your child spends money on knowing where he is going. He has been using Current for several weeks and manages his own money. Paying everyone independently with his debit card has given him a great sense of independence and already shows heightened interest in more responsible management of his money.
It is essential to teach children responsible expenses and late satisfaction, but it is necessary to let them make their mistakes. If your child quickly spends the entire allowance, he or she will be suspended for the rest of the week or month. This can be difficult for many parents. As you experience these small financial mistakes, you will learn lessons about responsible spending and the budgets that will stay there, which could prevent them from making more serious monetary mistakes as adults.
Teaching teenager financial education will help create a financial maturity that will guide the child throughout his life. Money is a very versatile aspect of every individual from childhood till old age and it is the responsibility of every parent to do this teaching to their growing child.
Valderas Financial Solutions LLC