More and more children have behavior and discipline problems derived from money. In many homes there are power struggles over these issues, especially in adolescents. Setting rules, limits, and enforcing consequences for your child’s spending habits will help her learn to make healthy money decisions throughout her life.
You need to teach your children that it is wise to earn money, but it is even more wise to know how to spend it correctly. This will prevent them from having behavior problems and also having good skills that will help them the rest of their lives. As a parent, it is your duty to teach your children self-discipline regarding the ability to handle money.
TAKE INTO ACCOUNT YOUR FINANCIAL HABITS
How do parents’ financial habits affect children’s attitudes and behavior towards money? Parents’ financial habits have a direct effect on their children’s attitudes and behaviors regarding money. Children often imitate their parents, and if a child sees a parent losing money or going into credit card debt, they are more likely to do the same as they get older. A child who has never shown how to save money simply won’t know how to do it once they start managing their own finances.
WHAT CHILDREN EARN
Children don’t really earn anything, parents decide how much money their children have earned. Children can start ‘paid’ appointments as soon as they are old enough to help with household chores, but beware! In tasks that do not have to do with their tasks already assigned, to earn the pay they have to do extra tasks. Children should not be rewarded for doing must-haves, like cleaning their bedroom.
If the child is actively involved in housework, such as cleaning the bathrooms, scrubbing the kitchen floor, and vacuuming, they should be compensated for it. The amount to be paid by the child should be based on the current level of the parents’ expendable income, as well as the amount of work performed and the age of the child.
RULES FOR MANAGING MONEY
There should be some rules for parents to help their children manage money … but the child will also need to have some independence. Making mistakes and learning from them is a good way to educate yourself on wise money management .
Children should be encouraged to save some of their money, and starting a bank account is a great way to achieve that goal or put the money in a piggy bank. Children have to learn that debt or credit is never a good option.
IF YOUR CHILD MAKES HIS OWN MONEY WORKING, MUST THERE BE RULES ANYWAY?
Of course. Parents can give their children more freedom over the money they earn, but the rules that exist are immovable. For example, you should never lend money to others or go into debt.
WHAT TO DO IF THE MONEY IS GIVEN AWAY?
When children receive money as gifts , should parents set limits on their spending, or should children be free to spend however they want? Freedom and independence are important in helping children learn more about money and how it works. Parents should explain to the child that the money is a gift and they can spend it however they want, but they should also reinforce the idea of saving at least part of it and that the spending they make is correct. It is important to talk with children about whims or items they really need.