Teaching your children how to manage their own money even at a very young age is very important and is of great help when they grow up. This would serve as their stepping stone as they enter and face the financial world. I believe that the country’s hope is the future generation. They are the future’s savers, investors, and spenders.
When you speak of financial literacy, this would include saving, budgeting, insurance, investing, and understanding the concept of debit cards, credit cards, and the like. We already have states that require personal finance education in schools. They even have increased their standards. However, this is not enough. This should not happen only in the classroom. Parents or guardians should also do their part in telling and giving their children enough knowledge about personal finance.
Parents should be responsible enough and must be realistic regarding their financial status so that their children would know how to manage their own money in the future. Open a conversation with your children. Here are some pieces of advice I can share:
When paying your monthly bills, take time to explain to your children how much these bills cost and how you are able to budget your income. Tell them the difference between paying the bills with a check and paying through credit and debit cards. You do not want them to be one of those people with bad credit credit cards.
You could also try having your children earn their allowance by giving them certain tasks that come with rewards. Give them their own money to manage. Training them as early as now would help them avoid acquiring credit cards for bad credits in the future.
Unlike the traditional piggy bank at home, you might want to orient them in using Money Savvy Pig and teach them the important concepts of spending, saving, investing, and donating. This would enable them to distribute their allowance based on their needs.
Remember to be a good role model to your children in terms of good money management. Children do learn a lot from their parents just by observing and watching their behavior and actions.
Always see to it that you maintain healthy and good habits in managing your finances.