How to Teach Financial Responsibility to Your Children

Someone who thinks about financial responsibility will never allow his/her children to spend money without his/her guidance. Kids are unknown to exhausted money affairs and they do not even acquainted about the value of money. It's all your duty how to teach them their financial responsibility. A five year child-boy can't do more with money but spend for his toy, chocolate or for fun. To allow them to get involved in small finance managements would be the first step for future financial obligations. How you can teach financial management and responsibilities?

·         Don't give money to your children without any cause. Hand them a task or some employment so that they can learn how money is important. After finishing the task, pay them for their job. Sometimes, you should make them to get money instead of gift on some special occasion like birthday. Tell them importance of money in their life and how it can secure our future. You can let them watch financial TV channel and help themselves to understand financial issues. Teach them in very easy language and include some interesting examples. Show them financial graphic, visual models or animation videos if possible.

·         Second thing is how to teach them to spend money wisely. Very initial thing to teach them about money saving. Tell your kids how to spend their precious money after saving. Realize them that every saved buck is equal to a made one. Allow them to spend two third of total money. Set money spending criteria in their mind. You can divide this in three part-

·         First for Essential Need- first they should spend for their very necessary things like school uniform, lunchbox, shoes etc. If at the time you have almost all these necessity then save some money for these kinds of need in future.

·         Second for Desire- Every child have a bunch of dreams and want lots of thing in their life. After spending on necessary things they should think about their tiny dream like bicycle, video game etc.

·         Third for Fun- afterward you can allow your child to have some fun enjoy his/her life by spending on entertainment.

·         You can allow your child to go for a job when he/she has grown enough to work. It will give them virtual knowledge of finance with decent earning.

Teaching financial responsibility to your children as early as possible is a very good and fruitful idea. Let them grow up and make their financial decision themselves.