There are many practical lessons that we parents teach our children from riding a bike to making their hair. A problem that we need to fix is that we do not prioritize teaching our children about personal finance which is as equally important as other life lessons. In this article, we are going to discuss some important lessons about the fundamentals of finance which will prepare them for the real world. No parent would like to see their child suffer from financial problems and this article is a guide to shaping your children’s future from an early age.
Normalize working as part of their life
Work is a blessing, it is good and not a curse. Everyone loves those lazy and long weekends but don’t let your children get used to sleeping in staycations and vacations. Teach your kids not to dread work but to anticipate it. Work comes in various forms and an essential part of the frugal lifestyle is to work to produce more and buy less. When you go out shopping with your children use online coupons that offer great discounts thus enabling them to save by store weekly ads.
Break the taboo and involve them in decision making
Being honest with your children even when times are difficult can set them up for the better. When you are struggling with finances learn to open up to them as they could learn some important valuable lessons. Children can only learn the value of money if you involve them in decisions that will directly affect them. Thus they can prioritize spending on the essentials and do away with the luxuries.
Learn to plan meals and cook
Food and drinks will always play a big part in any budget whether they are still small or all grown-ups. So they should start early to learn how to cook, plan their meals, and shop for foods which is a huge part of their financial lessons. Discuss the costs of buying ready-made foods and that of cooking at home while slanting the importance of getting used to cooking at home.
Budgeting skills are important
So that your children can know how to spend their money they need to have money. Start by giving your kids allowance money each month which they will be expected to save, manage, and budget for everything they will want to do throughout the month. Slowly they will develop the habit of budgeting which is essential in the real world.
Start early
Introduce financial lessons to your children using real-life scenarios and you will be surprised with how fast they will learn. Whether it’s reading price labels or understanding opportunity costs they are equally important. Before buying anything always give them a choice whereby one option closes off another. This will help them become more financially conscious.
While teaching your child about frugality, make sure you accompany the lessons with explanations. Allow your child to understand while the lessons are essential.
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