Teach your children to be wise with money

Many children are not taught how to manage money correctly, which causes them to grow up to be financially irresponsible. Debt is a big problem today and millions of people are deeply in debt, having trouble paying their bills, and experiencing problems in their relationships. Millions of people file bankruptcy annually!

Why do people have so much trouble managing their money? This is because society pressures us to spend our money on all kinds of things that we don’t really need. We are told to buy what we want because we deserve it. If we don’t have enough cash, we can load it and pay later. Unfortunately, the more you charge, the higher the interest, and the monthly payments keep growing. It’s really fun to take a vacation now or buy a new car, but when you’re still earning months and years on the road, the excitement will soon wear off.

Children should be taught at an early age how to manage their money. An allowance is a good way to teach them responsibility as long as you use it as a learning tool and don’t pay them to do jobs that they should already be doing as part of a family. As children get older, they can be paid to do additional chores so that they are better prepared for future employment and understand the concept of getting paid for doing a good job.

Help your children understand the importance of dividing their money into 3 different areas:

1. Save something: open a bank account for something important in the future, like school, a car, a house. Put some in a piggy bank for something they want in the near future, like a special item, a trip, or an event.

2. Spend a Little: This is for the things you want or need right now, like snacks, clothes, fun things. When you take your child to a store, you can use some of your own money to buy small items so that you don’t expect that you will get the money and appreciate your things more.

3. Give a Little: Have your child donate money to a worthy cause or make an offering at church. This teaches them the value of helping others.

Talk to your children about credit cards and how harmful they can be if used irresponsibly. Be a good example when using your own credit cards and trying to pay with cash or debit.

Helping children manage their money by making decisions with confidence will help them develop their esteem and have a much better chance of becoming financially responsible adults.