How to educate a child to be responsible for money

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How to educate a child to be responsible for money
How to educate a child to be responsible for money

One big concern of many parents is whether they will be able to raise financially responsible children. It is very difficult to work in this direction and requires a lot of attention to detail as well as patience.

It is easy to spoil a child by indulging him and buying him ready-made. It is more difficult to create a sense of financial responsibility in children. This happens from an early age, as soon as the child starts asking questions about money or about buying.

1. Don't be afraid of the money talk

Don't put off talking about money, savings, finances, obligations, your financial situation as a family. Always explain to the child, regardless of whether you think they will understand. It is important to get used to being responsible for money from an early age. Don't use children's and baby words, but don't overdo it with financial terms so that the child understands you.


2. Set a budget

The biggest mistake many parents make is giving their children a lot of money. Today it is convenient and often used by parents to give access to a bank account through a debit card, for example, if the child is older and can handle the card.

Ron Lieber, New York Times columnist and personal finance expert advises parents to set a budget for their children. Give them as much money as they need to buy a certain item or several things that you talked about in advance.

3. Stick to one system

For example, remove the ceramic piggy banks where children can collect some coins. Instead, give the child a larger box to fill. It is good that it is transparent so that he can monitor where his savings have reached and realize how much more he needs to save. This way he will learn to value savings for the sake of some goal.

4. Let the child make decisions

After you have set a budget, it is important to leave some responsibility to the child as well. Let it make its own financial decisions. Even if he makes a mistake and runs out of money, he will appreciate recklessness with finances even more. Explain your preferences for spending the money, but leave the child the opportunity to make his own decision, best reasoned.


5. Don't save him

Even if your child has run out of money, don't rush to save him and give him more money. That way, he will get used to always being able to rely on his parents and not having to try to save and spend wisely.

Don't be too harsh in your refusals either, lest you get the opposite effect. Some children turn to theft precisely when their parents take too harsh an approach, especially in the teenage period.

Always explain your opinion in a motivated way and avoid insulting the child, for example, "if you weren't so stupid, you would have more money now", "why don't you think when you spend, now you will be itching for money" or others similar.

6. Don't hide family finances

Children are best aware of the attitude towards money and thrift by taking an example from their parents. If you hide your attitude about money from children, it will be difficult for them to form a role model. That is why, through your own example, you can most easily show the child what attitude towards finances to build, especially with regard to thrift and rational spending.

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