As a parent, financial responsibility goes beyond squirreling away money or paying off debts. It also means teaching your kids how to be fiscally fit. Every moment with your child is an opportunity to instill valuable lessons about money management. Here are some easy-to-follow tips for teaching financial responsibility.
Involve your kids in financial activities
Teaching responsible financial behavior can be an imposing challenge in an age of online banking, debit cards, and credit spending. Bring back hands-on learning by involving your kids in spending money. Let your kids use their own money to learn by consuming. Allowing your child to make financial mistakes early on can go far in preventing future financial disaster.
Model responsible spending behavior
Discuss your own purchasing habits with your kids, share your budget with them, and teach them how to comparison shop. Then create a budget with them, and continue to provide support as they reprioritize their financial decisions. (Remember to tell them about charitable contributions.)
Make an allowance an earning
Financial responsibility extends beyond savvy spending. Creating a money-building process, like an allowance, can teach your child the importance of working, budgeting, and saving.
There are many engaging online tutorials and mobile phone applications to help children learn some of the finer points of finances, like taxes, banking, and investment. Beyond the value of teaching your children to be financially responsible is value of teaching them financial resourcefulness.