Millions of Americans suffer from debt and lack of savings.
Most cases of severe debt are caused by an inability to budget properly.
Chances are good that these people were not taught financial management skills as kids.
Teaching your kids proper money management at an early age can be the greatest gift you can offer.
Kids Learn About The World Through Their Parents
Children will take many cues from their parents about how to behave in the world. Money management is no exception to the rule.
Kids who see their parents spending money irresponsibly will do the same when they become adults. However, children who are taught good financial habits early will carry those habits into adulthood.
Children Need To Understand That Money Doesn’t Grow On Trees
Most young children assume their parents can just go to the bank and take money out whenever they want. Children don’t understand that money is earned through hard work.
A child that understands that money is hard to come by will appreciate their money more. This is why it is extremely important that kids earn an allowance as opposed to being handed money whenever they want it.
Savings Should Become A Habit At An Early Age
Understanding the importance of savings should be one of those habits carried into adulthood. Being able to save for the future will enable a child to raise a family, retire and live the way he wants to.
Good savings habits need to be started young because putting money away for the future is not our first instinct.
Credit Card Companies Target Young People
College students are targeted by credit card companies due to their inexperience with money. Teaching your children the consequences of using credit before this happens will be invaluable.
They should know about safer options such as a Green Dot prepaid card. A prepaid card will help your child control spending while away from home for the first time. Not being a mark for the credit card companies will save them many financial hassles in the future.
Good money management habits need to be instilled in a child as soon as possible. Kids who understand the value of a dollar will be more likely to be smarter with money as adults.
The value of a savings account, avoiding credit card companies and understanding that money is earned are all things kids should be taught early.
Photo Credit: MJ/TR
This is a sponsored post. Please read my Disclosure Policy for more information.