Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles



Debt Management – Teaching Children How To Handle Money


When you are raising children, one of the most important things to teach your children is how to handle their money. Children should be taught at a young age that you can’t always get what you want, when you want it. This automatically means that you can, and must, say "no" to children every now and then.

Of course, when they are capable of understanding, you also need to explain why you are doing this so that they do not get the impression that you are being harsh or depriving them for no reason. If you are able to train them in this way, they can begin to learn about prioritizing their wish list and getting perspective on spending.

Once your child reaches an age where you feel they are capable of handling a small weekly allowance, it should be made clear to them that a percentage of the money provided to them must be put away (saved). The portion saved should be at least 20%, but can be up to 50% - that is a matter for you, and depends on your own philosophy on saving.

Of the remainder, a percentage should be donated or applied to help others, and the balance can be spent. Since a child has no obligations to payments whatsoever they don’t really need the money. You are providing their home, food, toys and clothing, so they really do not “need” a great deal to spend – perhaps an occasional candy or a little toy. Keeping this in mind you don’t have to give a six year old child a $10 weekly allowance.

Keep the amount reasonably low so that they can run out of their money and know that’s it. When your child grows older their needs change and with that their judgment changes. You should still enforce the saving, giving, spending percentages, but they may start to nag you about additional money so they can get something that everyone else has!

The golden rule is to not give in without anything in return. You may like to allot your child some chores in order to earn some extra money. This way they learn that money should be earned and not merely handed out on a whim. You have to earn your money, so your children can too. As a parent you are obliged to provide a roof over their heads and provide for their meals, but it is also your job to prepare them for responsibility as an adult, not to spoil them rotten.

One way to teach your children about wise shopping habits is to give them the following challenge. Get them to actually check out different prices and compare them before buying anything by giving each child a list (how long will depend on the age of the child) of what you need and some money to purchase these items. Allow them to keep any change after they have purchased the items on the list.

You can be assured that they will go out of their way in order to keep as much change as possible in their own pocket. Depending on their age, you may even like to give them the opportunity to check out a number of different stores to fill the list.

Once your child is old enough to understand, you can sit down with your child and tell or show them what expenses you have to pay for every month. A lot of people keep their financial affairs from their children, but when you share this information with them, they know what to expect in the future. If they do not learn the process of balancing a budget and meeting monthly expenses from you, they will find it difficult to manage once they leave home.

If you take the time to educate your children about financial matters while they are young, you will have peace of mind when they are older, because you will know they can be trusted to handle their own finances.



Comments
Post has no comments.
Post a Comment




Captcha Image






BLOG TAG CLOUD
money loan flat broke negotiate credit card company candidate lending companies child spending child support tax info repay debt solution buying a house children budget credit accounts allowance checks stop harassment domestic support gambling problem paying bills debt collector help paycheck less money good budget unexpected expenses interest credit companies phone calls common debt traps reduce debts spending debt problems school jobs taking responsibility repay loans finances piling debts liability regain control professional purchases new job live within means paycheck info payday loan companies common debt great budget receipt doctors whole family cash card debt management tips installment plans Consolidation Company younger children understanding honesty unemployed visualization credit cards debt save money insurance initial research credit account charges introductory offers debt settlement borrowing extra payments management tips budget sheet ongoing bills child support debt overbearing bills checking account credit bureaus personal finances personal finance medical bills debt collectors telephone bills debt programs monthly payments losing your job bad debt management paying out debt credit report pay off debt borrow money credit repair great budget ideas debts second job specific budget categories own money salary overcharging debt management income financial education bank rebuild good credit account fees building debts implement a budget good credit job loss take control of debt worksheet expenses low interest modified payment plan invest money account interest past bad debt software teaching children finance injury pay off bill ill health debt traps high interest rate interest rate credit line control spending payment behavior gambling debts order report loan companies credit history utility payments credit limit cable bill asset info trusted friends credit card traps debt consolidation loans learning experience spend money debt consolidation medical debt deb consolidation need money installment plan lose your job borrower monthly payment credit card companies understanding home equity home equity lending company credit rating back support credit reports deals in writing full details budgeting payment frequency handling money credit company saving consumer lawyer managing debt debt payment period charitable organisation budget ideas hospital house loan classify bills debt collection agency live your life children saving down payment good credit rating fly-by-night credit card debt credit card cancer cash management program help insurances bad debt debit card court appearance making payments bad financial decisions debt management advice hobbies security social services mortgage payments interest rates home equity loans prioritizing purchase protection negotiation overspending more income loan agents illness restrict spending good debt get out of debt short sale debt relief agency bankruptcy total balance family assistance budget unsecured loan savings account monthly bill debt management mistakes sickness loans unreasonable expectations car loan discounts chapter 7 groceries repayment plans government assistance credit scores credit score become free legal action part time job comfortable living secured loan mortgages education credit checks debt free budget categories Chapter 13 loan harassment debt relief management advice extra money check card payday loan help with debt filing bankruptcy credit card help bills saving money debt company good credit record losing a job investing rent payments bank accounts assets loss of income original creditor tracking money monthly budget household items your rights seperate accounts loan amount home debts careful handling interest payments family budget internet emergency savings account creditors medical bill savings debt consolidation financial security



Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs