Tuesday, August 5, 2014

Teach Good Financial Habits to Kids From the Start

The relationship your kids have with money starts when they're very young. You don't have to constantly fight--just teach them the value of a dollar from the beginning using these ideas:
·  Give them an allowance--and stick to it. Agree on a reasonable weekly or monthly amount and then let your child know that he or she must stay within that allowance. Creating this habit now will form the basis for them to be responsible about their finances as adults.
·  Assign chores. Don’t link allowances to the completion of household chores. Let kids know they are expected to help out—without expecting pay.
·  Let them see you paying the bills. Expose them to the fact that with living comes bills. Encourage them to ask you questions about the bill-paying process, writing checks, etc.
·  Train teens about credit. Before they go off to college or go out on their own, teach your teenagers that credit cards are a privilege, not a right. Discuss the consequences of abusing credit, such as damaging their credit rating, high interest rates, and getting into debt

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