Do your children understand the value of money? Do you buy your children everything they want? Most parents do this because they love their children and want to give them everything they can. However, in the long term, this strategy is potentially harmful to your children. Children who are used to getting everything they want will have a hard time valuing money and understanding the concept of budgeting, earning and saving for the things they want in life. This can lead to over spending, over use of credit cards and a lifetime of money problems.
Explaining the value of money and setting a good example for your children can help them be responsible with money. Many parents don’t want to “burden” their children with the household finances or they feel they are too young to understand. However, another way to see it is that parents can actually “empower” their children if they are part of the household budgeting process. If your children understand the flow of money in your home, how money is earned, see you spending responsibly, they will get the right messages about money and learn lifelong skills around acting responsibly with their finances. Advantages include:
1. Helps children understand how money is earned and spent in their household
2. Helps children learn the value of money and gain lifelong skills around responsible spending.
Education Skills are on of the 7 key life skills in the Inspired Children Life Skills for Children program.