Setting up your kids for financial success

Three-fourths of Americans are living paycheck to paycheck. The main cause is debt in all its forms, student loans, credit card debt…etc.

The requirements for setting up your kids for financial success are simple. However, you need to start at an early age and spend as much time and resources as possible to ensure that they have the right foundation.

Here are 3 ways you can get started:

The concept of work

Help your children understand the importance of work. Parents should talk about work, and highlight the satisfaction that comes from hard work. When you give them chores to do around the house, make sure you say “this is your work”. Try to foster an environment where work is not a burden, but a natural and enjoyable thing.

Make him/her work for pocket money to understand that hard work is rewarded. Having their own money will also give them a taste of financial independence.

It’s also important to have your children think about what they want to do for their future and visualize their dream job.

Create teachable moments

The holidays are coming and like all parents, you love to see the smile on your children’s face when opening their presents. But don’t forget Christmas is also the right teachable moment for kids, to understand that it isn’t just about receiving but also about sharing and giving.

Help your children organize last year’s toys and give away the ones they do not use anymore to a local charity.  Discuss with them the importance of saving up to buy gifts for their grandparents or siblings, together you can come up with a plan and make sure they stay within the spending plan or budget.

Check out our list of Top Kickoff Money Related Gifts For Kids.

Say No!

Nowadays, Entitlement is spreading in our nation. Everything is within arm’s reach. You can click on a screen and boxes show up on your doorstep. You can buy a house without saving up money. You can also go shopping with an empty bank account all you need is a credit card.  It’s easier than ever to make it in this world; and yet, it’s harder than ever to make it in this world.

It’s your job as parents to financially coach your children on things like saving up, spending wisely, investing and planning for the things they want.

That’s where saying No! Comes into play. If you don’t say “No” to their request for you to buy them a toy every time you’re there for food, they’ll start thinking it’s what they deserve all the time.

financial literacy for kids christmas gift
Comments

Christopher Needler is a businessman, entrepreneur and the former Chairman of Hull City. he is the co-author of 3 books:
– It Doesn’t Grow on Trees
– Debtwatchers Debt Mastery Program
– Sanity in Clarity