Set Them Up for Financial Success: 8 Key Rules to Teach Your Kids*

It’s never too soon to start teaching your kids about money. In fact, the sooner you start, the better off they’ll be in the long run. 

In this following post, Carringdon Dean, experts in helping families beat debt, share with us the financial rules they believe all kids should learn. Alongside providing debt solutions, Debt Relief Canada also provide free information from everyday savings tips to Trust Deeds and more.

Check out the 8 financial rules below;

1. Start early: 

Money is a complex topic, and one that many adults have trouble understanding. So it’s no surprise that kids often find the subject confusing and overwhelming. However, the earlier you start talking to your kids about money, the better. They will be more likely to form good habits if you lay the groundwork early on. Explain the basics of money and saving in a way that they can understand, and Encourage them to ask questions. As they get older, you can provide more details and advice. But by starting early, you can give your kids a solid foundation for making sound financial decisions.

2. Be a role model: 

Kids learn by example. If you want them to be good with money, show them how it’s done. Talk about your own financial goals and how you’re working to achieve them. Share stories about times when you’ve made smart money choices – or mistakes, and what you learned from them. Let your kids see you budgeting and sticking to a spending plan. And if you ever have to make tough decisions because of financial constraints, explain why you’re doing it. By being open about your own finances, you can set a good example for your kids to follow.

3. Give them an allowance: 

One of the best ways to teach kids about money is to give them some of their own to manage. An allowance can help them understand the basics of budgeting and decision-making. It’s also a good way to start teaching them the value of work. You can tie their allowance to household chores or other responsibilities, so they learn that money is something you have to earn. As they get older, you can give them more responsibility for managing their own finances. But even a small allowance can help kids start to understand the concept of money.

4. Help them save: 

Saving money is one of the most important financial skills your kids can learn. And it’s one that will benefit them for the rest of their lives. When they start earning an allowance or getting gifts, encourage them to put some of that money into savings. Help them open a bank account and deposit their money there. 

5. Teach them about credit: 

Credit is a complex topic, but it’s important for kids to understand the basics. Explain how credit cards work and the dangers of using them irresponsibly. Help them understand that borrowing money has consequences and can impact their future. If they ever need to borrow money, teach them how to shop for the best terms and make sure they understand the repayments. 

6. Encourage them to give: 

One of the most important lessons you can teach your kids about money is that it’s not all about them. Help them understand the importance of giving to others, whether it’s through charity or simply helping out a friend in need. Not only is giving back important, but it can also help them develop a more positive attitude towards money. 

7. Help them find good deals: 

Teach your kids that they don’t have to spend a lot of money to get what they want. Show them how to comparison shop and look for sales. Help them understand that there’s a difference between needs and wants. AndEncourage them to be creative, so they can find ways to get what they want without spending a lot of money. 

8. Let them make mistakes: 

No one is perfect, and that includes kids when it comes to money. So don’t be afraid to let them make mistakes. It’s the best way for them to learn. If they overspend or make a bad financial decision, help them understand why it was a mistake and how they can avoid it in the future. By making mistakes and learning from them, your kids will develop the skills they need to make sound financial decisions. 

In conclusion, parenting is hard enough without having to worry about finances on top of everything else. But by teaching your kids about money, you can set them up for a bright future. Just remember to be a good role model, give them an allowance, help them save, and let them make mistakes. With your guidance, they’ll be on their way to financial success. 

Love,

*THIS IS A SPONSORED POST