Most families recognize the importance of good financial habits, yet many are uncomfortable talking about money. In fact, Freedom Debt Relief reviews show that while 95 percent of parents believe it is good to talk with their kids about finances, only 37 percent actually do talk about finances with them.
Money is a sensitive subject. Yet money and stress are often connected. Worry over money is one of the leading causes of stress in families. However, avoiding the subject altogether with your children can be detrimental.
Talk Openly with Your Kids About Money
Talking about money with your kids is a healthy habit to establish. Freedom Debt Relief reviews ways for having these open discussions such as including all of your family in financial discussions. Discuss a family spending plan with your kids that includes ways to save money and ways to cut back on expenses. Then work together with your children on these goals. For example, if you decide to save for a family vacation, get a big jar and put money in it every week. This is especially helpful for younger children because they can see the money that is being saved.
Freedom Debt Relief reviews of family habits show that it is also good to keep your family financial goals front and center. Write them on a bulletin board or create a collage to remind everyone of the big picture, especially when there is temptation not to save.
Use Your Kids Allowance to Teach Them About Finances
If you pay your children an allowance, this is a great tool for teaching them about finances. If you don’t currently give your kids an allowance, you should consider doing so. Freedom Debt Relief reviews suggest that when you give them an allowance, you should teach them how to allocate it. Show them how to divide it into categories such as these:
· Saving – Money they put aside for a long-term spending goal.
· Spending - This is money they are free to spend on the things they want.
· Donating – Teach children to be charitable by setting aside money to donate.
· Investing – Use this savings to teach your kids how to plan for the future.
Establish these habits with your children early on in their lives. By the time they are older, you can open an investment account with your child with the money they’ve saved for investing. Additionally, when they become teens, you can open a bank account with their name on it. Some banks will even allow them to have a debit or check card to use. This is a great way to get them started down the right path financially.
Disclaimer: Collaborative post.