Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles

Debt Management – Teaching Children How To Handle Money

When you are raising children, one of the most important things to teach your children is how to handle their money. Children should be taught at a young age that you can’t always get what you want, when you want it. This automatically means that you can, and must, say "no" to children every now and then.

Of course, when they are capable of understanding, you also need to explain why you are doing this so that they do not get the impression that you are being harsh or depriving them for no reason. If you are able to train them in this way, they can begin to learn about prioritizing their wish list and getting perspective on spending.

Once your child reaches an age where you feel they are capable of handling a small weekly allowance, it should be made clear to them that a percentage of the money provided to them must be put away (saved). The portion saved should be at least 20%, but can be up to 50% - that is a matter for you, and depends on your own philosophy on saving.

Of the remainder, a percentage should be donated or applied to help others, and the balance can be spent. Since a child has no obligations to payments whatsoever they don’t really need the money. You are providing their home, food, toys and clothing, so they really do not “need” a great deal to spend – perhaps an occasional candy or a little toy. Keeping this in mind you don’t have to give a six year old child a $10 weekly allowance.

Keep the amount reasonably low so that they can run out of their money and know that’s it. When your child grows older their needs change and with that their judgment changes. You should still enforce the saving, giving, spending percentages, but they may start to nag you about additional money so they can get something that everyone else has!

The golden rule is to not give in without anything in return. You may like to allot your child some chores in order to earn some extra money. This way they learn that money should be earned and not merely handed out on a whim. You have to earn your money, so your children can too. As a parent you are obliged to provide a roof over their heads and provide for their meals, but it is also your job to prepare them for responsibility as an adult, not to spoil them rotten.

One way to teach your children about wise shopping habits is to give them the following challenge. Get them to actually check out different prices and compare them before buying anything by giving each child a list (how long will depend on the age of the child) of what you need and some money to purchase these items. Allow them to keep any change after they have purchased the items on the list.

You can be assured that they will go out of their way in order to keep as much change as possible in their own pocket. Depending on their age, you may even like to give them the opportunity to check out a number of different stores to fill the list.

Once your child is old enough to understand, you can sit down with your child and tell or show them what expenses you have to pay for every month. A lot of people keep their financial affairs from their children, but when you share this information with them, they know what to expect in the future. If they do not learn the process of balancing a budget and meeting monthly expenses from you, they will find it difficult to manage once they leave home.

If you take the time to educate your children about financial matters while they are young, you will have peace of mind when they are older, because you will know they can be trusted to handle their own finances.

Post has no comments.
Post a Comment

Captcha Image

saving money expenses ongoing bills worksheet good credit rating live your life medical bills credit card bank discounts interest rates specific budget categories visualization hospital short sale credit line personal finance live within means bad debt management savings account understanding home equity credit card debt salary phone calls credit bureaus monthly budget loan cash unsecured loan interest budget total balance spend money good debt loan amount management program less money insurance illness credit limit installment plans family budget part time job interest rate education deb consolidation filing bankruptcy reduce debts debt consolidation debt problems understanding learning experience paycheck info borrowing credit rating debt management advice bankruptcy credit scores stop harassment debt company debts budget sheet liability credit original creditor lose your job bank accounts lending company negotiate good credit record home equity order report savings credit report payment frequency budget ideas debt free management tips paying bills great budget ideas credit history debt solution account fees gambling debts flat broke internet loan harassment debt payment period regain control credit companies installment plan full details account interest financial security debt management mistakes financial education gambling problem help with debt debt relief agency legal action classify bills credit checks unexpected expenses consumer lawyer initial research extra payments government assistance assets down payment child support fly-by-night utility payments finances mortgages debt consolidation medical debt buying a house cash card debt collectors restrict spending job loss Chapter 13 children saving loan companies loans trusted friends budget categories piling debts school jobs credit reports family assistance loan agents pay off debt mortgage payments child support debt allowance building debts paycheck monthly bill debt settlement become free debt collector help debt consolidation loans losing your job bad financial decisions groceries sickness modified payment plan new job prioritizing purchase protection tax info unreasonable expectations overcharging spending rent payments credit card help management advice repay loans debt traps implement a budget investing overspending credit score past bad debt house loan need money Consolidation Company chapter 7 debt relief honesty cable bill medical bill monthly payment back support home equity loans doctors asset info save money control spending car loan repay monthly payments budgeting household items lending companies debit card handling money extra money child spending loss of income debt collection agency whole family social services help credit cards great budget cancer tracking money credit company checks purchases seperate accounts comfortable living your rights rebuild good credit second job candidate taking responsibility credit card companies good budget invest money overbearing bills account charges common debt traps low interest hobbies security charitable organisation debt management tips credit card company insurances credit accounts payday loan companies teaching children finance secured loan unemployed injury emergency savings account receipt payment behavior borrower negotiation telephone bills credit repair money borrow money home debts ill health pay off bill high interest rate good credit managing debt get out of debt more income credit card traps personal finances debt deals in writing creditors younger children common debt interest payments repayment plans checking account bad debt check card bills careful handling making payments children budget saving debt programs income debt management losing a job take control of debt software professional own money introductory offers paying out debt court appearance payday loan domestic support

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs