The Importance of Teaching Your Children Money Management
Skills
If you have ever struggled with your own money management issues, you probably know how difficult
it can be to deal with personal finance issues. If you have made it to the light at the end of the
tunnel, and have been able to overcome financial problems, you also know how much easier it is to
get through your day to day life without worrying about money. If you do not want your children to
deal with same financial burdens you have struggled with, it is wise to teach them the importance
of good money management skills.
Establishing Solid Money Management Habits
Just as you teach your children other good habits, such as brushing their teeth and cleaning up
after themselves, you can also teach them good money management habits. The most important is
teaching your children the value of saving money and not spending their savings on an impulse.
Give your children the opportunity to save money by rewarding them with an allowance or monetary
value for completing tasks outside the realm of their regular responsibilities. To teach children
the connection between spending and saving, do not try to dictate how they handle their money.
Allow them to spend or save at their discretion. If you know your child wants to purchase a new
video game, but he or she wants to spend their money on a bucket full of candy, you can remind your
child that if the money is spent it will take longer to reach their goal of getting the video game.
Teach them, but don't tell them what to do.
Practice What You Preach
Although you may have the best intentions when it comes to teaching your children good money
management skills, they will not reap the benefits of your efforts unless you are also managing
your own money wisely. If your children see you constantly purchasing unnecessary items or
overspending, when you tell them how important it is to save their money - the advice will fall on
deaf ears. The old saying "do as I say, not as I do" will not work when it comes to teaching
children the value of good money management skills. If, on the other hand, your children see you
working hard to save money and successfully reaching financial goals, they will be more inclined to
follow in your footsteps.
Family Savings Goals
You can even set family savings goals together for fun. If you set a savings goal of a certain
amount to reach in a set time frame to take a family vacation, work with your child to save for a
goal within the same time frame. Your child can set a goal and save so that he or she will have
spending money of their own while on the vacation, or for some other item to be used on the
vacation. Whatever the family goal is, working together towards a financial goal can be fun and
rewarding and can bring the family together.
Richard MacGrueber
Take charge of your financial freedom by reading valuable debt management and savings articles
found at the personal finance budgeting portal http://www.MoneySpud.com
