Wednesday, September 21, 2011

Teach Financial Responsibility to Kids

Teaching financial responsibility to children will give them the financial foundation they need to act sensibly as adults. According to the studies show that people who learn financial responsibility at a young age also have less debt and more saving when they become adults.
Talk to your children about money. Explain about the different types of bills you pay and the importance of meeting payment due dates. Also talk with your child about comparing prices on items in order to find the best deal available.
Show the child how to make budget. Budgeting is a great skill to learn. Have your child create a budget with her allowance. Show what money she has, where she could spend it and how to save it.
Take you child in grocery shopping, explain how much money you have budget for groceries and talk about what you need to buy. Show him how to compare products and prices for the best value. These allow him to experience what it is like to work within a budget.
Open a saving account with your child money. Add a little at a time and teach the child how to keep up with the register. Explain the interest on the account and how it works. Discuss the possible dangers of impulsive shopping. Tell your child to avoid buying items on a whim. Differentiate between items that are needed and those that are wanted. Make it sure the children understand that if an item is expensive it is possible to save money to purchase it at later time instead of going into debt and purchasing the product right away.

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