To raise money savvy kids, please follow the steps religiously.
1. Practice tough love
“Don’t ever take your children food pack to them in school if they forget it at home. Let them borrow some food from their friend. Let them feel the consequence of their actions, they are not going to die if they don’t have lunch in one day. You should be breeding Eagles that can fly and not Turkeys” Denis Whitley.
Make your children hungry for solution to issues and not feed them with the solutions.. Creating hunger in them gives them the necessary bites for financial success. Be money savvy
2. Be a role model.
Children are Know to copy actions more, that they obey words or commands. They watch your actions and wants to replicate all they see you do. So practice good financial discipline in all you do that concerns money. Let them see what you preach through your actions, show your kids that you have good understanding of financial management. Show them that you are committed to proper financial planning, budgeting and savings.
3. Show them what things cost.
Let your children go shopping with you show them what things cost, allow them compare prices of similar items and show them how much you have saved as a result of what you have chosen to buy. Let them know that you need to cut down on certain expenses like eating out or movies because you are saving for down payment for a new car or annual vacation. Let them know how much it cost to fill your car with petrol every month. Show them the utility bills and their schools fees. Be money savvy
4. Give them Allowance
Test your kids financial management ability by giving them allowances. Watch how they handle their allowances, allowances are great opportunities to get to know how knowledgeable they are about financial management. Correct them if the becomes over zealous about. the way them spend their allowances.
5. Let them know about family finances
Once your kids can comprehend and understand basic arithmetic and you have explained to them what constitute the family budget. Let them sit with you to draft the family budget. Let them know how much the family earns and how much is budgeted for every expenses whether fixed or variable expenses. Share with them over the course of many years what you spend on charity and let then know that the spendings on charity is done to assist people in need. Be money savvy
6. Allow them take their decision.
Once you have set a budget, it is important to let your kids make their own financial decisions or make their choices. It’s your responsibility to ensure all spendings are with and within budget. If they now choose to spend their budget for cloth for instance on buying only one very expensive shirt, allow then but ensure they don’t get further allowances as a result of wrong choices.