Teaching your child about money: Instilling financial "cents"
We've got some important principles to teach your kids, no matter what their age.
Get Their Priorities Straight. Teach them that relationships are more important than things, and that saving is important. When they do spend their money, help them to prioritize how they spend. Start teaching this lesson as soon as you can; allowances are a great way to do this.
Discourage (Most) Debt. Tell your kids if they can't afford it, they can't buy it. Some debt - like mortgages and educational loans - is okay, but help your kids avoid debt from buying clothes and fun nights out with friends.
Curb Credit Card Spending. Does your teen really need a credit card? If you do choose to get your adolescent some plastic, provide clear rules and boundaries. If they break the rules, their privileges will get taken away.
Bonus tip: Add your teen's name to your credit card. Even if you never give them an actual copy of the card, it will help build their credit history.
Save. Save. Save. As soon as your kids have any kind of income - be it a paycheck or an allowance - make it a rule for them to save a certain percent. Help them form this habit early.
Get Giving. Your kids are never too young to learn about the needs of those around them and the importance of generosity. Sponsor a child the same age as your own son/daughter. He/she will grow with your sponsored child and can give more money as they get older. Or, set a good example and give a gift to NFI in your child's name.
Your kids don't come naturally knowing how to spend money well. Teach them these principles early and you'll put them on the road to being responsible adults!