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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 an example. Your kids watch you all the time. One day when I was putting gas in my vehicle my 5 year old son started to lecture me about using credit cards. You probably use some kind of card also when you fill up at the tank and yet like me you have most likely told your children that credit cards can cause many problems. Credit cards are tools but like a hammer they can cause damage if used incorrectly.

2. Take time when your children are young. Many times you are in a hurry when you are out and about so you do not take time to answer your children’s questions. I know it can be frazzling but think a few years down the road. You will want to explain things about money to them but they may not be asking because they already know all the answers. Take the little extra time when they are small.

3. Have a budget. Our spending overtime usually evolves into a budget system since most of us have to be careful with our money. Use this as an opportunity to teach your kids that each month you have a set amount of income that comes in and therefore, you have to be careful how you spend it. This may also help your cause when you are at the store and your child is asking you to buy them everything they see.

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. Shopping. As a father I do the grocery shopping sometimes and I frankly do not know how my wife does it. You have to have a degree in purchasing. Add to that whining children and well, you get the idea. What I do is I take a few children with me and I tell them to find the best price on different items. You can even get them a little hand held calculator and teach them to figure cost per ounce.

6. Financial markets. Your children hear comments about the financial markets everyday and may even be asking you questions. This is the best time to start teaching them. Get some books from the library and rent movies like “Wallstreet” and “Trading Places” (Does contain nudity and language so get an edited version). You can watch the news with them and take time to explain to them the meaning behind the financial news. Very good stuff.

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.

Tags: Money

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