As a dad, you accept that you’ll need to support your kids for a while. Hopefully, you expect that it is only until 18, but we all know this is rarely the case. You don’t mind, of course; you’re happy to lend a financial hand. But, you shouldn’t allow them to be dependent on you forever, and that’s why it’s crucial to teach them about money as soon as possible.
Ask Them About Financial Goals
If you ask your kids about financial goals, it can give them a more thorough understanding of how money works and what they need to do to achieve these goals.
These goals can be short-term, such as saving up enough to buy some new shoes or an Xbox. They can be long-term, though, and could involve saving up to buy a car, go traveling, or pay for college.
When they announce their goals, you can start to create a spending and saving plan with them. They’ll need to miss out on a lot to achieve these goals, but when they finally meet their financial goals, they’ll be grateful they showed the discipline.
Practice Good Habits With Them
As they say, practice makes perfect, so you can’t expect your kids to build and maintain excellent financial habits without a little training. You can do this as early as possible, and encourage them to save pocket money, or any coins leftover from the tooth fairy.
With this, they’ll soon see how their bank account can grow if they show enough discipline not to spend it on impulse. Often, it’s this restraint that is the difference between financial happiness and financial worries. While they might think that a couple of bucks here and there isn’t much, this soon adds up when they spend it every day.
Expose Them to Adult Spending Early
They will need to be exposed to the costs they will encounter as an adult eventually, so you may as well get them used to this as early as possible.
While it’s not the best idea to charge an 11-year-old rent, you can start doing this once they reach a certain age. Most parents will do so around the age of 18 when kids are technically independent. However, if they get a job earlier, you might want to ask them to help out with household bills.
You should also remind them of other costs in life, such as taxes. Encourage them to keep a record of their earnings, so they don’t encounter any when the taxman cometh. You can also provide them with alternatives such as a tax settlement, as this will reduce stress and help them to feel more confident and with their options should they encounter any issues.
Getting Them Ready
Your kids are unlikely to feel too buzzed about you sitting them down and lecturing them about how to be sensible with money. But, while they won’t enjoy it at the time, they will come to appreciate it later in life. Many eighteen-year-olds can struggle with money early on, and this is because they don’t have the right education. They might not realize it now, but you’re doing them a favor.