Since having a family comes with so much financial responsibilities, having a regular conversation about these financial duties will sure help give the whole family a sense of direction.
As parents, while you try your best to achieve your financial goals, you at the same time make effort to teach your kids everything they need to know about how to make good financial decisions.
You really don’t need to be a financial expert to do this for the family. Children learn from examples, and whatever financial practices they learn from you will go a long way in shaping their relationship with money in future.
So, to inspire your kids about the best financial practices, these five tips shared by Kim Potgieter can help mould them into the personal finance experts you want them to be.
1. Family Goals
If every person is expected to have financial goals, it makes a lot of sense for families too to have family goals. And while you save for these goals, it is important you let your children know what you are saving for.
Also, every member of the family should have their goals and dreams. You can as a family chat about these goals and how to achieve them.
2. Money Mechanics
As a parent, it’s important you let your kids know how money is earned and how they can do with it.
If your child gets everything handed to him, he’ll probably find it difficult to understand that he needs to work to make money. Let him understand why you go out in the money and return in the evening.
3. Wealth and Work
Wealth comes with work, you can’t make money if you don’t lift a finger. Let your kids know they will make much money as long as they believe wealth and work walk together.
Be positive when you discuss your work with them. Let them know that work is that activity through which you earn money that enables choices.
4. Pocket Money
Giving your kids pocket money when they complete a task that adds value to the family is a valuable lesson that is capable of teaching them about the reward you get for working.
You can also use this same pocket money tip to teach them how to save money.
5. Pay yourself first
Paying yourself first is the first golden rule you need to manage your money well. Apart from paying bills and taking care of other necessary expenses, you’ve got t start rewarding yourself too.
Teaching your kids this rule is a good way to encourage them to be mindful of savings.