Contributed post by Samantha Garbett
There are many lessons that we need to teach our children as they grow up.
From basic everyday skills, such as how to tie shoelaces, to slightly more complex lessons for older children, including cooking and cleaning. But what some parents forget is that they also need to try to instill some kind of financial knowledge into their children before they reach their late teens.
Sure, they will pick up some basic money know-how throughout childhood, but it’s your duty to show them how to be sensible and responsible with their finances. That way, they will be able to grow up to enjoy a comfortable financial situation without too many money worries.
So, are you wondering which are the most important financial lessons to teach your children? Here are some of the most important ones.
To Plan For The Future
One of the most important things that everyone needs to do with money and their finances is to use them to plan for the future.
So, you should always tell children that, when correctly used and planned out, finances can help them live a comfortable life, even once they have retired. If you already use an estate-planning service, such as Estate Planning CPA, you should let them know about the inheritance they can expect to receive.
They will then know just how important it is to have something like this in place for themselves once they are older. It’s also wise to teach them about pensions as well so that they understand the importance of putting money away each month as soon as they enter the world of work.
The Ability To Budget
Your children also need to know about budgeting. In fact, this is something that you can show them with their pocket money.
Even though they might not receive a huge amount, there should still be enough for you to use as an example. You might even want to let them have a go at planning their own weekly budget. In the beginning, you might want to supervise them to make sure they are making some sensible plans!
The Importance Of Saving
As well as budgeting, saving some money each month is also a really important part of being financially independent. If you get your kids into the habit of doing so now, then they should continue to do so once they are on a full wage or salary in adulthood.
How Money Works In Real Life
Sometimes children struggle to get a solid perspective of the real world.
This is especially the case when it comes to money as their only experience of it might be playing shops with their friends! One way you can show them how money works in the real world is to take them shopping with you so that they can see how all the transactions you make work. This is also one way to show them your own budget in action!
Hopefully, all of these lessons will help your children become financially independent adults!