Teach your children well.
Here are a few concepts that can teach your children to have a healthy respect for money:
1) Saving for a rainy day is important. When we spend everything we get as soon as we get it, we aren’t prepared to handle the surprises – or even opportunities – that may come along.
2) It is necessary and important to work hard for your money. Money is something to be earned. An allowance is a great way to learn about this, particularly if chores must be done in order to earn the allowance.
3) It’s critical to have a budget. Teach your child the basic principles of budgeting: money comes in, money goes out – and it’s important to balance the two! Ideally part of the budget is that “rainy day” savings.
4) “Giving” is also an important part of a budget. Sharing is a concept we all hope our kids learn early on. Encouraging your child to give a part of what he or she earns to some type of charity helps to instill multiple life lessons!
5) Setting goals is a great way to learn how to save. Your kids can use an Adventures in Savings account as a great way to learn about goal setting – and to earn rewards for reaching savings goals.