Teach Your Kids About Responsible Finances Before Ever Giving Them a Credit Card
How do you feel when you hear about a young person in their 20s who is in thousands of dollars of debt, mainly credit card debt? Do you think about your own debt laden adolescence, or do you feel bad for them that they were never taught how to manage their money?
It’s a sorry sight to see anyone in debt, but it’s often especially heart-breaking or upsetting to see someone who has just been granted independence be weighed down by debt. The truth is, it could have easily been avoided. If only they hadn’t spent so much money. If only they understood that missing one bill leads to another then another until they are swimming in debt.
The truth is, nobody taught them how to spend, how to save, or how to budget. Even if they tried, they didn’t give it enough time to make sure they truly understood.
You Must Teach Your Kids About Money
It’s too bad there is not a subject in school entitled “Money Management” right along with Math, English, Science, and History. Even if Money Management was just one class in high school, who knows how differently money would be managed today.
Teens will learn little to nothing about money in school. You need to make sure you cover it. Just as you should teach your kids how to walk, talk, brush their teeth, and drive, you must teach your kids how to effectively manage their money.
Teach Them Through Hands-On Responsibility
The best way to teach your kids about money is by giving them some. If they are still young, you can give them an allowance. As they get older, they can get a job. A good rule of thumb is that if they are old enough to drive, they are old enough to get a job.
Give them money and give them expenses. Have them pay for their own fun such as outings with friends and things they want and have them pay their cell phone bill. When they get a card, have them pay for gas and insurance.
Don’t just give them the money and expenses, teach them how to budget. Encourage them to save money and have a money saving goal.
When you teach your kids about money at a young age, they become more responsible with it as they get older. By the time they are teenagers, they will have jobs and know how to save and spend effectively. Finally, when they are grown and ready to move out on their own, they will make it and, hopefully, not end up in debt.