As a parent, knowing how to teach your kids the value of a dollar is one of the most important life lessons you will encounter. While you may always be concerned about their financial future, especially given the economic climate at present, it is important not to badger your kids about money.
If you make the topic of money difficult to understand, or in a way that fills them with anxiety, they will not be able to create a healthy relationship with money for themselves. Go at their own pace, and don’t be scared to introduce to concept of money from an early age so that it becomes something natural in their lives for you to further encourage when the time is right.
Hand Over The Cash!
When out grocery shopping, entertain your kids by allowing them to make payments for you. This will allow you to oversee the process and give them a first-hand insight into how monetary exchanges work. This will also help build their confidence, and is especially fun for youngsters who are looking to find ways to feel more “grown up.”
Set Up an Account
One of the simplest and easiest ways to introduce a dollar value to your kids is to let them have a go for themselves. Opening a youth account only takes a few moments and can be completed online or at a local branch. This will give them access to their funds, and teach them how to interact and manage their very own bank account. Walk them through the process and help guide them to success thereafter.
Set Financial Goals
When taught the true value of the dollar, most of us learned through actively seeking out our own cash-flows. Encourage your kids to find a summer job and to save pocket money towards a long-term goal. This will help demonstrate how being frugal can lead to reward, and help them budget by becoming accountable for their own ideas. This positive encouragement will go a long way.
Don’t Be Too Hard on Any Mistakes
Unfortunately, most people don’t have a perfect credit history, but take faith in the fact that your kids will learn true financial value in understanding and communicating the topics of their mistakes. By simply taking the time to sit down and explain how these situations arose and how best to prevent them from recurring, you can be sure they will never make the same mistake twice.
Credit Card Comparison Sites
Eventually, your kids will want their very own credit card. This may be to help with college tuition fees or to help with expenses when moving out of the home. Hopefully all those years of hard work will pay off, but help them one last time to create a responsible credit history before leaving home. You can always add yourself to their credit card account to help monitor the transactions, just in case.
Researching credit cards and credit for your kids can seem like a worrisome task, but professional help is at hand. You can find more information at www.creditcardcompare.com.au.