Teaching Your Child Financial Responsibility!
It’s a tough old world out there and the sooner you start teaching your child about personal financial responsibility the better. Children can learn the basics about money at a very early age. Start when he is about 3 years old. Take him to the grocery store and explain, often and in many ways, that the money you and your mate earn while you are away working is what pays for the food that you are buying. Give the child a small amount of money, let him choose something he wants and pay for it himself. Begin giving him a small weekly allowance when he 6 or 7 years old.
Get him a piggy bank and teach him to save first, spend second…and then wisely. Give him small chores that he can easily manage and attach doing the chores to receiving the allowance. In other words, help him come to the obvious conclusion that work equals income. Do not hesitate to withhold the allowance if the chores are not done and let him suffer the consequences. Don’t provide him with the ice cream cone that he would have bought with his allowance had he done the work.
Pick a date, such as his birthday, to increase his allowance and the chores required of him. By the time he is 12 to 14 begin encouraging him to earn extra money by getting some jobs on his own…such as mowing the neighbors lawn and, also, encourage him to save for things he would consider long term goals such as buying a car. A part-time job should be considered by the time he is 16. Be sure it’s not one that will interfere with his school work. After he graduates high school and is ready to start college, get him a pre-paid credit card. Explain that you can add money to it as required but, also, explain that you will be able to see exactly how the money is being spent and there are limits.