Being a parent comes with a number of responsibilities. You need to teach your child to walk and talk, as well as how to stay safe and, ultimately, manage independently from you. However, there are some financial tips that could really be of use to them, especially once they want to manage their own finances. By teaching these at a young age, your child can be better equipped to keep themselves clear of debt, and have a more fruitful future.
Set Up a Pension
Although your child is only young right now, they will not stay that way forever. In time, they may branch out on their own, gain a career, and grow in life as you once did. Many people feel that their retirement is decades away, so may not give thought to how they will fund their lifestyle when the time comes. This can be a fairly serious mistake to make. Instead, you might want to teach your child about clear and honest personal pensions, and how these can be used in the future. In addition to this, the sooner your child sets up their pension, the lower their monthly recommended payments may be, and the more they may receive when it comes to them retiring from work.
Live Within Your Means
Once your child has their own allowance, or even bank card, it might be tempting for them to run wild with their newfound freedom. Although infrequent splurges may not cause issues, getting into the habit of spending money as quickly as possible could see them come unstuck in the future. Teaching your child to portion their money so that any required payments are made, savings are built, and they still have a bit left over each month can really come in handy. Also, helping them to understand that they don’t need to keep up with the Joneses, or buy things simply because other people have them, can also be crucial.
Be Grateful
It can often be tempting to look at the things other people have and feel envious. This might involve celebrities or the wealthy, as well as other family members or friends. From a young age, it can be a good idea to teach your child to be grateful for the things they do have, right down to the food in their stomach and the roof over their head. This can help them to avoid frivolous spending, and also make them more considerate, mindful people.
Although money is a staple requirement to be able to live your life, that doesn’t mean it should be squandered, or even dictate whether or not your child can be happy. Teaching them good money tips as they grow could help them to understand that there is more to life than the things you own, as well as avoid getting caught in debt traps. The use of pocket money, or an allowance, may help to physically show them the true cost of living, as well as how to save for the things they want.
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