Teaching Finances To Young Children
Many adults are in financial dire because of partly lack of financial teaching and management while they were young. Teaching young children how to save and use money wisely is critical today if parents do not want their 40 year old come back to live with them.
There are different ways parents can teach children responsibility with money. One is by encouraging the child's involvement in the financial decisions that affect that child. Having an allowance and the ability to control their money is another good way for children to learn about finances. Attaching responsibility to their allowance shows children that the source of money is work.
Once children have money, the hard work begins. Now comes the trick of teaching them the balance between spending and saving. Naturally, everyone would like to spend rather than save. It is important to start teaching children the basics of saving, including tithing 10 percent of everything they receive or earn.
Offering to match what your child is saving is a great incentive for drawing attention to what he or she actually is putting away. Furthermore, allow your child to withdraw money from the savings account if he or she wants. Giving children responsibility means allowing them to live with their choices, good or bad.
Once your child has the savings habit down, it is time to consider investments. One way to introduce children to this new realm of finances is to open a mutual fund account that will be funded entirely with your child's money. There are several banks that will allow a parent to open a child's account and help the child manage that account until the child is eighteen. You can check with your local bank if they have these services.
Betty Odak http://www.babbankruptcy.com, http://www.ccaafp.org/index.php/about-betty-odak/21st-century-piggy-bank/
Article Source: http://EzineArticles.com/?expert=Betty_Odak
