How i Involved Children in Financial Budget. It’s Helps very much in their Financial investment life
How to Teach Your Children about Financial Planning
I have witness how children can turn out successful in life after learning simple financial budgeting plans from a tender age. I wasn’t for the idea of involving my two kids in my financial budget. However, my wife kept insisting we should always involve the children in every family activity. I felt like am burdening my children with adult issues. In the long run, I have seen the positivity of involving them as better money managers.
Financial knowledge
A fact about finances is every choice you make has an impact on your family. This doesn’t mean you burden them with a mortgage, loans, and retirement. Nonetheless, you can start with a simple family budget such as groceries, shopping, and house expenses. Let the kids learn what priority is and what’s not when planning for your shopping. Sometimes we want to look okay and mask some problem to please the children. It’s okay to let your child know today mum and dad have money for groceries only. However, when I get more, we can purchase your favorite toy or snack. This will instill a concept of budgeting on priority items.
The simple discussion will apply in adulthood, where they can purchase food and pay rent over going for a friend’s party or road trip. As they advance, teach more complex finance lessons. My wife and I started with a shopping budget. We carried our kids to the stores to first check and compare the prices. After we are satisfied with particular store prices, we would purchase. The lessons were more practical than discussing. Today my girls are old enough to drive to the store, but they always get the best prices before purchasing an item. This helps save quite a lot which is directed to other sources.
Saving Spirit
The majority of parents don’t discuss saving with children and feel it’s too much for young kids. There are favorable ways of teaching children to save money. My wife and I started by getting the kid’s collection of wallets. We rewarded them for good deeds like helping with the kitchen, making their bed, and performing in school. It wasn’t easy to convince them to save the amount in the collection wallets. Since they would have wished to purchase their favorite toys. So we visited the bank, at the bank, there is a section for children “young stars and smart star.” The bank helped us instill and saving the value in our children. There were told about how their money would grow if they save more, and they can open an account with the bank.
Whenever we went for any banking activity, my girls were at the frontline to take their money collection for the month. This made it easy when my first day got her first job after college. She saves half of her salary for emergencies and retirement. I didn’t have to struggle educating her about saving for a rainy day or retirement.
How To Involve Your Children In Your Family Financial Budget
Always talk about money
When I was growing up, my parents didn’t talk about finances. It was a grown-up conversation, and I had to learn from my own experiences. I have made so many mistakes before realizing my age is advancing, and I have no saving of funds to raise a family. You can involve your kids in money conversations, let them know the prices of certain items.How the fuel has hiked and what privileges they can forego. Children are little human beings who can comprehend money topics. It will help them understand why you work hard. The majority of the children only know they have a house, car, food in the fridge, and have many toys. They don’t know where and how you got to have all the things. It is wise to teach about money and sacrifices such as savings to get what they see around the house.
Involving children in budgeting
Not all areas are conducive for your children, but you can check on areas such as entertainment, traveling, groceries, birthdays. Involve them in planning the budget to fit the amount you have set aside for the activity. Let them learn to work with a budget and not to go beyond their means.
Making Goals
My wife is very creative in encouraging a saving attitude. She used to make beautiful charts which she colored using different crayons. Every time the girls increased their savings, she would add the color to show progress. The kids worked very hard to reach their savings goals and take the money to the bank. There was a reward for anyone who hit the saving mark. It was encouraging and has helped keep the same saving attitude to date. Ensure to offer realistic goals; if you’re saving for a vacation, ensure they feel obligated to save to get ticket money. However, you need to fund the process and also encourage their efforts. Once they achieve, go for the vacation or do what you had planned. Never push your children to save and fail to fulfill the reason or things they are saving for. It will discourage and kill their spirit since they will feel saving doesn’t yield to anything.
Giving
Besides saving, teach your kids about giving. Every year my wife and I would visit the less fortunate and offer our gifts. We would request the girls to gather what they would like to give. We never got involved in choosing what they will give. Each selected from their toys and clothes, shoe books, and every item. This taught them to give wholeheartedly without being forced to give their best toys.We also gave them money to offer and teach them to value everyone no matter their situation. Today my younger daughter, who is still in college, volunteers at several homes—helping different families with food and clothing.
I can say we are proud parents though finance is a crucial matter.We have managed to instill financial value through simple activities. Today we are not worried about the financial aspects as our daughters have followed in our footsteps.