There is nothing more important than teaching your children the lessons that will make them successful in life. Whether it is how to cross the street safely or not to talk to strangers, these lessons are incredibly important to making sure that your children are on the path toward success in life. While some lessons are easily taught and easily remembered, others are more difficult. Finances can fall into the latter category. But, while it may be a bit intimidating for you, teaching financial responsibility to your children is vital and should begin at an early age. It does not have to be boring or scary either! The following are three topics that you will assuredly want and should cover with your children so that they have the powerful knowledge and tools necessary to build their financial futures.
Talk About Debt
One of the scariest but most important topics to discuss with your children is debt. Debt is something that consumes the lives, minds, and financial resources of millions throughout the world. As such, it is important to guide your children away from the problems that can be associated with this financial burden. No, you need not talk about your own financial picture or worry your children with large concepts at too young of an age, but discussing debt in broad terms can really help you to make sure that you are preparing your children for the right future.
Talk About Saving
Another important aspect, as much as debt, is the idea of saving. Savings are so important to protecting an individual and making sure that they are saving for that “rainy day” scenario. Savings can start early, as soon as your child starts earning their own personal income and even their allowance. It is also possible to make saving fun. Talk to them about saving some of their candy now so that they can enjoy it later or talk to them about how important it is to prepare for their future educational pursuits. All talks should be age appropriate but there is virtual no age that is too young to not talk about saving. Make sure it is part of your discussion.
Teach Money Management
If you are giving your children an allowance, be sure to set some parameters on the funds. For example, if you are providing financial resources to your children, make sure they know what that money can be used for and what monies you as the parent will not give them. If their allowance is for trips out with friends, then, make sure that you do not give in and provide them with the money. This will do more than just teach them through tough love that you care but is providing them with the foundation necessary to learn how to manage money in the future. This lesson can start early and can be a great way to provide your children not only with financial skills but with the budgeting tools that they will need to run, maintain, and enjoy a financially responsible life.