5 Sure Ways To Set Your Kids Up For Financial Success

  1. Make Budgets Based on Income

Nearly one in five adults, regardless of their generation, named this as a primary lesson for children in the survey.

Children are often victim to the feeling they need to keep up with the Joneses, eyeing a neighbors new bike, or coveting a friend’s fancy toy on the school bus.

Looking at costs of items they want and then exploring possible income ideas is a good way to start budgeting with your child.

Have them figure out how long it would take them to purchase the desired item with the income available to them.

Kids don’t need exact breakdowns of your financial choices, but, as Dave Ramsey suggests, they should be privy to concepts like “saving, budgeting, paying down debt, and giving.”

In a insightful study by the prestigious University of Cambridge, it was discovered that children already have money habits formed as young as 7-years-old.

Setting a good example for your children on how, when, and where you choose to spend your money is vital.

Try having older children right down totals for purchases where you used your credit card throughout the week, showing them that whipping out plastic is still deducting from your balance.

Parents hear too often from their kids, “mom, just go to store and buy one”, every time something breaks, gets used, or lost.

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Helping our children understand basic financial principles is part of healthy parenting, creating successful individuals that flourish in our absence.

Please let us know in the comments section if you have a way you like to educate your children on financial responsibility.

 

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