GUIDING YOUR CHILD TO FINANCIAL INDEPENDENCE

The natural process of parenthood is often accompanied by the drive to have ones child be a pillar of success and happiness. As we all know, success at its highest form attracts a hefty price tag. So why not bend the tree from that child is young. Don’t wait until the bend becomes unbendable to teach your child good money management skills. You might find the following tips helpful in achieving the right balance of water and sunlight, needed to fuel good habits in your child’s financial future.

Tip 1) Talk about financial goals with your children and help them to devise a plan for success. Don’t be scared now, fortunately this conversation is a lot less painful than the birds and bees talk. In the plating of the seeds to success, you’re helping your child to figure out what things are important to them and the means by which they can be achieved.

Tip 2) Encourage your child to get a part time Job. Whether is it is working after school in the Library or working on the weekends at a nearby bakery or garage. Having a part time job teaches your child the value of hard work and subsequently the value of a dollar.

Tip 3) Split the Bill- Every child now desires the use of internet connection or a Smart phone and these bills do add up. By giving your child the responsibility of contributing to the internet or cell phone bill, prepares them for the day to come when they will be the overseer on their financial plantation. After all if they’re old enough to work, they are old enough to pay their own way through.

Tip 4) Bank on it- Opening a starter savings account is one of the most important landmarks on your child’s journey to financial independence. This provides a great medium through which they are able to save towards financial goals such as acquiring electronic gadgets or attaining tertiary education. Their little hearts and egos will climb to an all- time high on the excitement scale, when they see the numbers growing in their accounts.

Tip 5) Create a budget- Budgeting is a way of life for some, if not most people. Teaching your child to create a budget of their own, allows them to understand the link between revenue and expenditure at an early age. By comparing their earnings (part-time job, allowance) with their expenses (cell phone bill, entertainment), enables them to track spending and ensures they do not purchase things they can’t afford.

Finally, the best thing you can do for your child, is be a role model of fiscal responsibility. After all children do live what they learn.