Raising financially independent children is not easy for many parents. Read this blog post to learn the basics of making your children financially independent.
Raising financially independent children is a challenge for many parents. As soon as they start their first job, the kids ask how much money they should spend on lunch. It can be hard to know how much freedom and responsibility you want your child to have with their finances. In this blog post, we will discuss how you can raise financially responsible children so that one day they will be able to take care of themselves!
How to Raise Financially Independent Children
Almost 8 in 10 parents provide financial support to their adult children; this means that more than half of all parents in the United States, pay for their children’s phone bills after their kids become adults. If you want your children to learn to survive without you holding their hands, it’s time to let go of their hands. Read below to find out how to raise financially independent children.
Start Early and Teach Them About Saving Money
There is no right age to teach your children about saving money. Therefore, “the sooner, the better” is the right approach. Instead of allowing your kids to buy candies and toys, you should teach them about setting financial goals. Make them save their money, and pay for their basic needs like a haircut or decorating their room. This will motivate your children to save money and teach them its value.
Teach Them Everything About Spending
Talk to your children about how much money they should spend on lunch or how much of an allowance you want them to have. Make sure it is something reasonable for their age and income level so they don’t feel like they are being punished when they are given a smaller payout.
Make Them Responsible
Encourage responsible spending by taking the time to teach your child about how credit cards work and how debt can affect our lives (and theirs). You can start by asking your children to pay you back the amount you gave them. Enforcing this condition helps them stick to a budget and become responsible. Moreover, it will also help your children understand how lending institutions work.
Ending Note
Be mindful that you are teaching financial responsibility to children, which means we need to say “no” sometimes when it comes time for them to buy something at the store. However, be aware that they will have their moments where they feel entitled because everyone else in school gets this privilege! Teach your children to find the perfect balance between spending and saving. This way, they won’t be dependent on anyone but themselves to buy what they want.
