Four Ways To Teach Your Child Financial Responsibility

8:02 pm Parenting

As a parent, it’s your job to raise your children in a way that will help them get a good start in life. From teaching your child basic manners to helping your teenager learn to drive, there are many different things you will teach your child throughout his or her life. One of the most important things you can teach your child, though, that will truly help him or her get a good start in life is how to be financially responsible. If you want to teach your child about the value of money and how important it is to handle it responsibly, here are four things you can do.

1. Give An Allowance

Since your child is going to need to have a little bit of money if he or she is too learn how to handle it properly, have your child earn an allowance. Yes, earn. Do not just give your child money. By making your child work for an allowance, your child will be more apt to appreciate the value of money.

2. Budget The Allowance

When you give your child an allowance, sit down and make a budget. Allow your child to keep some of the money, but set aside some of the cash to save for the future. Teaching your child about budgeting money will help your child later in life when he or she has to pay monthly bills.

3. Open A Savings Account

Take the allowance money that is to be saved for the future and put it in a savings account in your child’s name. At first your child may not like the idea of putting money into a bank account, but over time he or she will get used to the idea and continue doing it in the years to come. Plus, money saved in a savings account can accrue interest. The idea of free money just for having a savings account may encourage your child to want to save even more of his or her allowance, and saving money is good.

4. Set An Example

If you really want to help teach your child about the value of money, you need to set a good example. Only when your finances are in order can you teach your child how to handle money properly. If your finances are not in order, this could be a good time to fix your credit so you can have more to offer your child when teaching him or her about the value of money.

It is your responsibility to your children to give them a good start in life. While there are many things you will teach your children over the years, teaching about the value of money is one of the most important things they will learn from you. When you teach your child how important it is to earn money and handle it responsibly, you are helping to set them up for a future of financial stability. While it may be a struggle at first, your children will soon appreciate the valuable financial lessons you have taught them.

Jessie Rodriguez writes about personal finance, education and parenting. His recent work is about earning an online masters in education.

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