Financial success could be one of the things that you want your child to achieve when he grows up. Managing his money wisely is important to make this happen. There are things that you can do to prepare your child become a responsible adult and become financially stable. The role of the parents is very important in shaping who their children would be in the future. Here are some of the things that you can do to help your kid become successful financially when he becomes a adult.
Start Training at a Young Age
It’s recommended to start training your child about money as early as possible. You don’t have to teach him immediately about stocks and investments, but rather with little things that his age could comprehend like the basics of saving and earning. When you begin early, your child would get used to talks about money and it would become part of his daily life. It would be easier for him to comprehend more as he grows and it would be easier for you to impart more advanced knowledge about finances that would be appropriate for his age.
Teach Him How to Earn
One way on how your child would understand the value of money is by letting him earn it. This experience would teach him that money is something that you work hard for and not something that you just pick anywhere. That being said, he would be more careful on deciding where and how to spend the money. You may ask him to do specific household chores and pay him.
Let Him Handle Financial Responsibilities
Part of managing the finances is budgeting. After you earn, you need to make a budget in order to determine how much goes to where and how much you can save. In order for your child to learn, he must also experience how to budget his own money. Ask him if there’s anything that he wants to buy. It could be a toy, accessory or an item that he could use for his hobby. Let him save from the money that he earns from you and if there are excess from his allowance so he could complete the money he needs to purchase what he wants.
Allow Him to Make Mistakes and Learn
It’s normal that your child would make mistakes along the way and that’s okay as long as he learns from them. This training period is his learning ground and the time to make all the mistakes that he could make so he would be more prepared in the future. For instance, if you have given him a budget for a week and he used all of it before the week even ended, he would end up not having anything to use for the remaining days. Learning from this experience, he would know that he needs to stick with his budget and spend within his means to avoid the same thing from happening.
Teaching and training your child to become financially responsible to attain success wouldn’t be effective if you don’t set a good example. Be a role model to your children as this is what would make a huge impact on them.
Featured and 1st image by Poppy Thomas-Hill (Flickr: Girl Purring Money Into Piggy Bank) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
2nd image by David Dennis [CC BY-SA 2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons