Some good methods to help your kids be more financially responsible and keep them on a good track for when they make their own decisions.
1- Avoid Impulse Purchasing
Though it is mostly a rule for children old enough to understand what an impulse buy is, keep them from making big purchases on the same day they find it. Set a number with them (20 dollars for example) and have them wait at least two days before deciding whether they still want to buy it. By doing so, you are teaching them not to rely on exciting purchases for feelings of fulfillment. Helping them manage their delayed gratification is a vital lesson to learn in today’s world of two-day deliveries and digital purchases.
2- Have Them Manage Their Own Money
Whether you choose to give an allowance or pay them to do specific chores, give your kids the ability to manage their own money. Strongly encourage them to save money and build up to big purchases instead of buying what they can afford now. But you have to give them the ability to control when the money is spent, otherwise, they might not feel responsible enough for the lessons to be taught.
3- Create Big Financial Goals With Them
Run through a financial goal that your child can set for themselves that they might really want. Make sure it’s specific, reasonable, and show them how being responsible can give them something big that they want. This is one of the most important goals for them to hit financial wellness, as it will train them to wait and buy the things that really matter for their adult lives.
4- Encourage Them To Be Generous
Giving money generously to others might not be the most important financial wellness trait, but it’s an important one for them to learn to teach them how to be a better person. Talk them through how valuable their money can be for nonprofits and charities that could really use their money for good, and push them to willingly give some of their money to the cause.
5- Warn Them of the Dangers of Debt
It might take some time for them to be old enough to understand, but make sure your teenagers understand how dangerous debt is for them. Give them their own bank account and show them how to manage their money responsibly and never hit 0. Talk to them about how serious loans are and to not take debt for frivolous spending. As they get older, these lessons can help them stay financially healthy and lay the seeds for their future success.