Monday, July 24, 2017

The Importance of Educating Your Children About Money

When bringing up children we all want to teach them the right way to do things to make their lives as easy and carefree as possible from an early age. We start schooling them in vital  life lessons almost as soon as they can walk. The difference between right and wrong, manners, responsibility, the importance of sharing to name but a few. As parents, we like to lead by example, but there are circumstances when we have succumbed to common financial pitfalls, and it is up to us to make sure that they don’t do the same.

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In today’s economic climate it is never too early to start learning about money. Where it comes from, how to look after it and how to use it.

Unfortunately, by the time some of us are parents ourselves, we have already made our fair share of financial mistakes. Falling behind with the rent, late payments, foreclosures, and repossessions are all things that we may experience at some stage in our lives. Hopefully, most of us will have been sensible enough to enlist the help of credit repair services to help us rectify any resulting bad credit. Credit repair companies work to fix credit and remove any negative items to improve your credit score.

Such experience will probably have served as an important life lesson, and now it is time to pass our knowledge onto our children while they are young. These are just some of the ways we can prepare our little ones for their financial future.



Where does money come from?

Children need to understand exactly where money comes from. Try and explain the concept of going to work and earning money so that they don’t think that the local ATM is purely a source of free cash!

Money doesn’t grow on trees

Now is a good time to teach youngsters how to look after and respect their money and make sure that they understand that we put our hard earned cash in the bank to keep it safe.

Learn how to budget

The best way for a child to learn about money is to give them some. Even with a small allowance, a child is never too young to grasp the idea of budgeting. If there is a particular toy or comic that they want to buy this week, they learn that they will have to wait longer to be able to afford the latest action figure too. It is all about priorities!

Savings

Instill into your child that saving money is something to be proud of. Make sure that they understand that they don’t have to spend their pennies as soon as they receive them. Encourage children to save for something they really want. They will love going to buy that yearned for toy themselves.

Finally, teach your kids the importance of shopping around. We all like a bargain so make sure that they know how to get the most from their money. That way, they shouldn’t go far wrong when they have to make some of life’s bigger purchases.

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