Wednesday, August 22, 2018

Controlled Environment: A Safe Education For Kids & Money

Teaching your child how to manage their finances isn’t always an easy task. When they are young, understanding the value of money is almost impossible, as they simply haven’t had the exposure to see what it’s worth. Of course, though, as their parent, it’s your job to give them this insight into adult life, and this post is going to help to do it. Exploring the different stages in their life, it will give you a good idea of when you can introduce them to several different ideas.

Infanthood: An infant is never going to be very good with their money, and they probably shouldn’t have access to very much of it. This doesn’t mean that they can’t be part of the process of improving their future finances, though. For their fourth or fifth birthday, holding a no gifts party for them could give you the chance to start collecting some savings for them. Asking guests to put money into an account for the future, rather than buying wasteful gifts, will give you the chance to show your kids their money growing.

Early Childhood: As they get a little bit older, you will be able to start trusting them more and more with their money. At this stage, one of the best ways to help them is by presenting them with some difficult decisions to make. A small amount of pocket money won’t go very far, but will give them the chance to save for things they want or spend their money on smaller things which won’t give them as much enjoyment. While they are still young, it will be worth helping them with this, as they may struggle to understand why you’re doing this with them.

Childhood: As your child enters their last few years in mandatory education, they will have more and more chances to be good with their money. At this point, opening a bank account for them will give them their first real chance to manage their finances, especially if you continue to give them a little bit of money each week. You can monitor this sort of service for them, ensuring that they aren’t wasting what they are given. Along with this, though, you could also introduce them to budgeting at this stage, having them help you to shop and spend money for the household.

Teenage Years: Finally, as the last stage in this process, it’s time to think about their teenage years. At this point in their life, they will have a greater need for money than ever before, but it’s worth being a little bit strict. If they only have a small amount of money each week, they will be forced to choose between seeing friends, buying clothes, and anything else they want in life. A lot of people will also encourage their teenagers to get a weekend job, though it’s a good idea to make sure that this won’t impact their studies.

Money is one of the hardest parts of life for a lot of adults to manage, especially as they are growing up. By giving your child the tools they need to conquer this area early on, you will limit the chances that they have issues in the future, and this is something worth considering throughout their development.

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