The best way to teach your kids about money is by example. If you practice good spending and saving habits now, your children may do the same as they get older.
Key Points:
The goal is to teach your kids about money so that they don’t get into debt when they’re older. You can use your own financial decisions to teach your kids about money or you can provide them with an allowance to practice on their own. Either way, practicing good money habits now with your kids may be able to keep them out of financial difficulty in the future.
If your finances are not in good health, use your kids as inspiration to get out of debt and improve your finances. Create a budget if you haven’t already and consider having your kids create one too, if appropriate. If you decide to provide a weekly or monthly allowance for your kids, make sure to update your budget with the new line item.
If you cannot afford to give your kids a weekly or even monthly allowance, try other ways to teach them a healthy relationship with money. For example, use holidays or birthdays when they may receive money as presents to teach them how to spend or save wisely.
Keep your lessons age-appropriate when teaching your kids about spending money. Teenagers may need more guidance than a younger child, for example, especially if they have a part-time job.
If your kid goes a little overboard with spending money, make it into a lesson. Help them figure out how to make better choices the next time they spend money.
An emergency fund or a savings account can help provide the funding for unexpected bills. While kids won’t necessarily need an emergency fund now, getting into the habit of saving some of their income can be helpful in the future.
Lead by example when it comes to good financial health by getting professional help when you need it. If your credit card debt is overwhelming, ClearOne Advantage can help you get your finances in order. Contact a ClearOne Certified Debt Specialist at 866-481-1597 today to discuss your situation, explore your best debt relief options, and get a free savings estimate.
The information provided is for informational purposes only and is not intended to provide legal or financial advice. Clear One Advantage is not a lender, credit repair or consumer credit counseling company. Clear One Advantage doesn’t provide credit advice. Please consult a certified financial advisor for individual credit and lending advice.