Your kids and money: a family affair.

In these times of crisis, I invite you to engage your children early in the financial life of the family, to learn to value this resource and make good decisions.

Under your supervision, your children can learn the following

It is earned through hard work. Share with your child the time needed to work to earn the price of a movie ticket. You can use the minimum wage as an example. According to your own salary, you can help your child to calculate the working time you invest to finance a family trip. When you arrive late and tired at the end of the day, invite your child to associate the things you enjoy at home with your work effort.

However, the value we assign ourselves to things we buy. How much is for you a new toy? It’s good to have ongoing discussions with our children so they become accustomed to put into question the prices of things they want to buy. How much are you willing to pay for any object that you want? Everything has a limit, and the owner of the money has control over how to spend it.

Children learn to use the money where it belongs. Ideally, given the opportunity at home so that children can make money. Without confusing expectations daily living (good behavior, help, study, etc.) with the pay undeserving, you can define certain remunerated activities, such as caring for siblings smaller, or help Mom clean up after of a party. In many families “Sunday” or allowance that is given once a week for children to begin to manage their own expenses it is customary.

Children are motivated to save their money when they aspire to things that do not reach to acquire. So it is very healthy that the money they receive at home is not excessive, so they have to save to achieve buy or pay something special. If Dad immediately buy everything the child wants, you are stealing the opportunity to learn to delay gratification. A child who learns to save your money for a future goal also learn to plan and be independent.

In the budget, what things are necessary, and what are luxuries? Help your child to define its priorities to ensure they cover the essentials before spending on things that do not matter so much. It teaches that you can never have everything, and is training for future responsibilities and making good decisions.

Share your own money to benefit someone who needs it will be a rewarding and educational experience for your child. It is very important to help create social awareness in our children, if you have a lot, there are others who need you. Practicing generosity can start at home where parents publicly acknowledge the children when they spend for others.

Your son wants to buy something and not enough money. If there is an offer and can not wait to save the amount required, you can show how a loan is requested. Waters with loans! As they have to pay, you have to help the child plan how it will comply. The plan should be done first in the notebook of the budget, including provisions to repay the debt in a practical way and for a reasonable time. If you are the lender is important if collect the debt for your child to learn to pay what he asks.