The money skills kids pick in their childhood will affect their spending habits for the rest of their lives. You want to set your children up for financial success and that doesn’t necessarily mean saving up for their college fund or handing them. Teaching your kids some important money rules will set them up for financial success. Freedom Debt Relief reviews eight money rules every parent should teach their children.
You get paid for working. It’s not enough to tell your children that “Money doesn’t grow on trees.” You let them know where the money comes from. Explain the relationship between your going to work everyday and you having money to spend. That way your children know that money doesn’t automatically just come to you.
Use a budget to plan your spending. You should have a plan for how you’re going to spend all the money you bring in. That’s the best way to be sure you’re taking care of all the most important things.
Wants and needs aren’t the same. It’s important that we cover our needs before we ever think about paying for the wants. Freedom Debt Relief reviews needs as the things you can’t live without, things that are necessary for survival. Wants are things you purchase to help you feel good, but you can live without them.
Live within your means. This means that you shouldn’t create a lifestyle that costs more than the income you bring in for a period of time. If you create more bills than you can afford to pay, you’ll run into major money troubles that are very difficult to undo.
Start saving early. Saving money isn’t always easy; it feels much better to spend than to put money away. But, there’s a benefit of saving early. Your money has more time to grow. When children can learn to be disciplined savers early in their life, it will benefit them once they have a job making more money.
Don’t borrow too much money. Borrowing money allows you to afford things you couldn’t pay for on your own. The downside is that you have to pay back what you’ve borrowed with your future income. If something with your money changes, if you lose your job or have other bills, it can be difficult to pay back the money you borrow. Freedom Debt Relief reviews borrowing as little money as possible as a way to avoid getting into too much debt
Keep track of your spending. Remember that planning your spending with a budget is an important money rule to follow. Freedom Debt Relief reviews tracking your spending as another way to be sure you’re not spending more than you can afford. As you track your spending, you can keep up with how much of your money you have left to spend.
Shop smart. Don’t just accept the first price you see for an item. Look around at other stores or other products to see whether you can find a less expensive version. Smart shopping is key to making sure you’re not spending more money than you have to.
Don’t think that you don’t have to talk about money just because they’re kids. Freedom Debt Relief reviews these eight money rules as a strong foundation for starting the money conversation with your children. Even if you’re not an expert, you can share your lessons and mistakes in hopes the lessons will help your children succeed financially.
