Though we don’t like to admit it, unfortunately, it is true that the world depends on money. Without having the right financial setup, you are instantly at a disadvantage in the world and so as a parent your main priority should be ensuring that your child is at the highest possible advantage in the world, as this will mean that they are ready to take anything on and pursue your dreams,
As a parent, you are responsible for teaching your child the value of money, but wanting to do this, in theory, is a lot easier than actually setting out to do it. Here are some great ways to teach your children the value of money.
Set an allowance
As a parent, it can be tempting to give your child money whenever they ask for it as all that you want is to ensure that your child is happy. Doing this can be detrimental to their understanding of the value of money and so instead you should give them a set weekly allowance. Don’t be afraid to make this allowance low as it will teach them valuable life skills like making sure that they understand how to make their money last and how to budget.
If your child runs out of their set allowance, then we recommend that you stay tough on them and do not give them any more money. This will teach them that once their money is gone it is gone, which will only increase their understanding of the value of money, and easily it can be lost if not invested well.
Share your own money struggles
One of the best ways that you can really let your child know the potential risks that come with not having enough money is by sharing any money troubles that you may have had in the past. At some point or another, we have all struggled to stay on top of bills and that is just a part of life.
Tell your child when you last had money issues and explain to them what you had to do in order to deal with it and what sacrifices had to be made. By doing this your child will be able to relate these potential future money issues to themselves and will take steps to avoid them.
If you are sharing your money troubles with your child, the last thing that you will want to do is make them scared of potentially failing in the future. So as well as recommending that they don’t get into difficult money situations, you have to also make sure that they know that there are ways to fix it. Let them know that things like second chance credit cards exist for when they may need it or that they can come to you in times of need.
Let them play games
If you are a parent, then you have probably been asked hundreds of times if you can purchase some in-game currency for your child’s favorite game. Our recommendation is that you actually purchase their in-game currency, but very rarely. By setting them allowances and how much they can have, they will become better at budgeting their money and reserving it for things that they really need. Much like in life, having a lot of in-game currency to play around with makes the game a lot easier and opens your children up to a number of different advantages and so they will want to hold onto their money for as long as they possibly can.