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Teach Your Children About Money
Filed under: Savings, Young Adults, Adults
Everyone has had money problems sometime in their life. Your children will be no different. You can help them avoid some of the stress of money problems by teaching them how to handle their money.
When they get that first paycheck or the birthday or graduation cards start rolling in help them come up with a plan for what to do with their money. Without a plan, the money could be spent with nothing to show for it.
Start their money plan by negotiating how much they want to keep for spending money and make them keep it reasonable. We all know how cash seems to evaporate out of our wallets. So the less cash you have on you, the less you can spend...or lose depending on the child.
Talk about your finances and take advantage of teachable moments like shopping, paying bills or payday. Showing them how you divide your own paychecks between cash, checking, and savings might be a good place to start. Show them that just because you have money doesn’t mean you can spend it all right now. Bills are due throughout the month and unexpected expenses always occur. Saving and checking accounts are made for putting money away for those expenditures. Learning to manage money is their first step towards financial independence.
