5 Money Mantras You Should Share With Your Teenager For Financial Success
Parents always wish the best for their children right from the minute they step into the world. Be it the best education, best clothes, best food and the best in life, parents go out of their way to make it happen. However, invariably, a few parents tend to miss out on imparting in them one of the most valuable life lessons, the importance of money.
Children often look up to their parents for almost everything and financial lessons are an integral part of this learning journey. If you start early, therein lies a brilliant opportunity to inculcate a healthy attitude in your children towards saving and investing. Here are some quick tips you can share with your child that will surely help prepare them for life in the real world.
1. Get An Early Start
Make sure that your kids get an early start because when children develop and hone financial skills from an early age, they'll be ready to face the financial challenges by the time they hit adulthood. Establish a good foundation right from the get-go by teaching your children about financial basics such as budgeting, saving and spending.
2. Monitor Spending Patterns Regularly
Another important habit which you need to instil in your child is the value of money. Encourage your children to write down how much they spend and what they spend on so they know exactly where their money goes. Last but not the least, make them earn their stripes; instead of handing them cash, let them earn the pocket money by asking them to do odd-jobs around the house. This will help them understand an all-important lesson in life – money is earned and not just handed over.
3. Always Save
Make your children recognize the importance of saving by asking them to make saving a habit. This can be done by teaching them to revisit their spending and savings goals at the end of every month. A great way of encouraging saving in children is by rewarding them; either by agreeing to put something towards it or by matching what they put aside. Moreover, when your children come of age, make them feel responsible by opening up a bank account which will help in sharpening their money management skills as well. Imparting the right education when it comes to saving and spending will provide a foundation that allows them to grow into responsible, successful adults.
4. Reap Benefits
While showing them the benefits of savings is all well and good, unless they see some tangible benefits emerging from the savings habit, they wouldn’t take it seriously. Teach your children to strengthen their willpower by differentiating between wants and needs. If your child wants to buy a fancy bicycle, encourage them to set goals by making them work towards it. Help your child understand that by putting aside some of her allowance every day, she can someday use it to buy the bicycle she’s been so craving for.
5. Tax Savings
It pays to save. The importance of tax planning should be imbibed in your children as soon as they form an understanding about it. Explain the advantages of proper tax planning and how it not only helps in reducing the tax liability but also in building up saving towards the various goals one has set at different life stages. While you’re at it, do explain the benefits and importance of life insurance and policies.
The ‘Bottom Line’
Teaching your kids the value of money is extremely crucial in order to make them financially responsible for a secured future. Parents have a great deal of influence on their children and they tend to learn a lot about how to handle money through their parents. Make sure to set a good example if you want them to emulate your habits.
AN Dec 20/17