source: http://www.livingwellwithinyourmeans.com
We are now in a modern era. Gone are the days that playing “tago-taguan”(hide & seek) on a full moon, or “shatong”(a stick game) on a wide open field was the best game ever. Now a days having an Ipad, Xbox, the latest cellular phone, or playing the latest RPG or any other video game is the in thing and of course more expensive unlike the old days games.
That is why we need to teach the younger ones(if you have kids already). So how do you do that? Below are some of my personal ideas on how to make the younger ones financially free.
Include them when you are budgeting, show them why you can only buy such with a limited budget.
Lots of people today don’t really make a budget. Also in a family it is usually the mother who prepares the budget based on what the father hands over every pay-day. I have a post about budget which you can read here.
In order to really make your children and even your husband realize where the money goes you got to get everyone involve in planning the family budget. It is common that the goal of budget is to cover the expenses with the limited salary the breadwinner hands over but you can change this by focusing on saving for future needs. Most of the time family budgets everything and don’t set aside money for savings. Set aside a saving goal and if such goal is achieve try to reward your family with simple treats like a Sunday ice cream or if it is affordable a family movie date if the family achieves the savings goal. Be like a financial planner and assume that your family is your client.
For small stuffs train them to choose or buy wisely. Train them to compare prices and quality before buying. There is no point of buying cheap but of very poor quality, because you will end up buying again.
Teach your kids to make wise buy decisions. Tag them along when your buying groceries and present them two brands of the same item and guide them in making the right buy. Teach them first to buy quality.
Again it is more common for people to buy cheaply priced goods because they think they are making savings. But in reality such goods are good for the price you paid and not the value you are expecting. By pointing quality then quantity first to your kids when buying, they start to grasp and value money.
When they are ready give them a weekly allowance to work on. Instruct them that they can only spend within that allowance and that if they overspend they can’t get next week’s allowance.
source: http://articles.timesofindia.indiatimes.com
Trusting your kids and giving them the chance to be responsible enough to handle money will immerse them in handling their finances.
Yes it is scary. But unless your kids learn how to spend it wisely on their own they will forever be dependent to you for money decisions. In a way it is your fault when your kids even in their adult years keep on having money problems because they have been dependent to you for decisions in regards to money. As early as possible be the financial advisor of your kids so that they start early.
Be an example yourself. Don’t buy expensive gadgets when you don’t have the money, don’t even charge it to your card. Just don’t buy when it is not a necessity.
Lastly you set the example. Why do you expect your children not to expect you to buy them the latest game console, the latest shoes, and the latest phone when yourself buy the expensive things in a blink of an eye. They would even have tantrums when you say no reasoning that you don’t have money to buy it because they know you use your credit card to buy your own things.
If you really love your children then set a good example to them. And yes don’t hide it when you buy expensive personal stuff, be always transparent with them so that they too would be transparent when they get to start living their life and start earning their own money.
Nice post!
Being a new dad, that’s one of the things I’m really thinking hard how to do (execution-wise, without draining the fun). Thanks for the tips!
Your welcome Carlos!