We all want to see our children succeed and properly preparing them for their financial obligations in the future can be a beneficial start.
You’d never allow your child to jump into a pool without knowing how to swim, so why wouldn’t you prepare them with the financial knowledge to help to protect their futures? Although even adults can struggle to adhere to their own financial aspirations at times, there’s no denying that understanding what goes into the future may make a lot of difference.
Budgeting, planning, investing and saving are all things that children can pick up from a young age and we’re sure that they’ll thank you for the effort in the future.
What do kids really need to know?
There are only a small selection of things that could be considered a priority to know about.
Instant gratification can be bad
If you’ve ever heard the saying ‘good things come to those who wait’, you’re already on the right page. Patience is a virtue and this is a good trait to teach to your child. By encouraging them to appreciate what they have right now, they could learn to carry that over to their financial values in the future.
Set goals and stick to them
All children have impulses, but if you’re keen to help them to learn self-control, why not encourage them to keep money in their pocket, as opposed to splashing out on things that might not matter once bought? Show them that by sticking to their goals, they could save up for something of value to them; instead of having countless trinkets that won’t mean a thing.
Don’t overshoot your capabilities
Rather than teaching children to take out loans which could lead them into the path of debt in the future, doesn’t it seem wiser to show them how to live within their means? If they want something, you could encourage them to save up for it and a good way to do so is by defining a budget to adhere to their financial capabilities. Pocket money can be the ideal solution to teach them on this front.
Always prepare for the worst
As adults, some of us can be unprepared should we find ourselves facing financial woes. To teach children how to deal with these unforeseen circumstances, you could try helping them with a savings plan. By adding to a dedicated savings account from an early age, you could teach your child to set aside their extra cash for a rainy day – and this is something that they’ll undoubtedly appreciate in the future.