Six Suggestions For Teaching Children Financial Responsibility

Teaching children financial responsibility is one is of the most important things you can do as a parent.  Money affects most every aspect of our lives and financial irresponsibility is the cause for most divorces and credit problems in general.  Here are 6 techniques to help you.

1.  Set a good example.  Children are very aware of what is going on around them and they will start questioning some of your actions.  Take using a credit card for example.  When I fill up sometimes my little children will ask me why I use a credit card if they are bad.  I have to chuckle at how intuitive they are.  But this gives me an opportunity to explain to them the proper use of a credit card.

2.  Start when your children are little.  As soon as your children can ask for a piece of candy they are ready to start learning about money and financial responsibility.  You can take a few extra minutes and kneel down beside them and show them the different markings on coins and bills and how they relate to price tags.

3.  Set a budget.  Budgeting is a very useful tool for any family.  Many children think there is a "money store" where you go to get money and there is an unlimited supply.   When teaching your children about money you can talk about the family budget and how it helps you control how you spend money.

4.  Delayed gratification.  When your child sets their heart on something they really want sit down with them and develop a plan for how they can earn the money.  If you just give them what they want every time they have a notion your children will not learn the value of money.  Teaching children to learn while they earn is a gift from you to them.

5.  Take your kids shopping.  You are probably already doing this so give them something to do.  Show them your shopping list and as you go down the isles have them help you find the best price on certain items.  You will be amazed at how good they can be at this and your children and you will find more joy in shopping.

6.  World markets.  Financial markets are a part of our lives so you need to educate your children about them.  This will go a long ways in teaching them about money because they will make better buying decisions.  What is a "blue chip?"  Why can the market go down in a bull market when unemployment goes down?  Your children need to know.

Teaching children financial responsibility will pay huge dividends down the road.  There are many benefits for you also because your children will become more appreciative of you because of all you do for them.  Tell your children that it costs between $100,000 and $150,000 to raise a child to the age of 18.  Help your children by delaying immediate gratification and setting a good example.  Educating them about the stock market is an excellent way to teach them also