It is critical to teach your kids to be smart about money. Since back to school time is just around the corner, remember that some lessons are not always taught in the classroom. How to manage money is one of those issues.
By sharing good saving habits with your kids, you will be helping them to become more financially responsible adults. We believe here at Family Attorneys Texas; it is possible to encourage your child about the value of money, money they earn, as well as money they will save and wisely.
Let's Begin With Good Money Habits:
- Let kids be kids. It is necessary. Explaining a budget to a 3 year old may not be the best thing to try to convey; but you can begin to teach good habits by being a good example through your own actions. That way you can introduce them to these concepts as they get older and they will have a foundation to draw from.
- Saving money will pay off. While saving might be a little challenging for many kids and teens, we believe you will be teaching the instant knowledge about how good it feels to purchase something brand new. Making saving fun with ideas lik wish jars and piggy banks are additional rewards for saving.
- Consider opening a savings account as soon as your child is old enough to understand it. Keeping them involved by making the deposits, and showing them how to be responsible for those finances will go a long way towards establishing a lifetime habit.
- Budgets will always be important. Does your child have something they want like a toy or gadget? Establish a budget to save for that item instead of getting it for them now. Take a small portion out of their allowance and put it back to purchase it for themselves. They will really learn that saving is a necessity in life, and also that earning will always require work.
- Price shopping is also a fact of life. Get the best deal by shopping the prices for items needed at competitive stores. Comparaing prices and waiting for the sale can pay off.
- Bonus tip: Back to school sales tax holidays. In most states now, they offer sales tax exemptions on items like clothing, computers, and school supplies. In Texas, August 5-6-7 are the designated days to big savings...
- Credit cards: While credit cards are often a necessity, it is a great thing to teach the kids the right reasons to use a card properly. Remeber that it does cost to use that money in the form of finance charges. Interest on some cards can be as high as 35%; and if you add an additional finance charge it could not save you as much as you think.
- Openly discuss about when and when not to use that credit card. Kids can observe houw you budget and how you prioritize what you spent. Encouraging good spending habits by what you do, will help educate as well as build that solid financial foundation they will need all their lives.
You can help your children learn more about saving dollars. Have your younger kids check out tips, games, and resources for kids. Teens can also help to build solid foundation stones to saving for a lifetime by quick, simple, and easy to learn options in what we have outlined above. Pass this article on to friends and family who may have young children coming up. It's a good deed to practice every day.