We have 2 daughters 12 and 13 what is the best way to teach them to be responsible about money?
2006-10-01 10:57:40 · 7 answers · asked by whattheheck 4 in Business & Finance ➔ Personal Finance
Sit down one or two nights a week for "Kids Financial Time"... Make this a habit... AND do it weekly !!!! Talk openly about money, bills, household expenses and ask them if THEY HAVE ANY questions. Show them how YOU MUST pay the electric bill and many others... Don't think it is above their head. Talk plain language and they will understand in ther own way and time.
Start an IRA for each of them.... sit down with them, talk to them about this account. Telling them that is if for their future and THEY need to contribute to it monthly or annually. If you give them an allowance, require 1/3 of it go to the IRA, 1/3 to a savings account and 1/3 they can spend.
Explain that the savngs account is for things such as christmas gifts, birthdays, extra things they might want to be saving for till they have enough to purchase it. Continue to stress the importance of ones future and that the IRA should never be overlooked due to short on money in some other area. This is where the "pay yourself first" concept comes in. If at the end of the month, they are short on money then they are to DO EXTRA.... not expect it from mom, dad, grandparents, etc... The sooner children learn that they are ultimately in charge of their finances and the well being of their future, the sooner they will take notice and start caring about it. They CAN LEARN how easy it is to be in charge of their money and do well with it !!
Get them out of the house and doing for others.... Does an elderly neighbor need her leaves raked, snow shoveled, groceries carried in ? Get them out there to also do these things out of the kindness of their hearts.... NOT everything has to be done for payment..... Money IS important but when a good person does good things... more money comes their way.
Another thing I strongly recommend is getting them started in the stock market. They can first play it... with that being said I mean they should read up on it, listen to what you know (if anything), save for it, Pretend to buy a peice of a certain stock and watch it go up and down in the paper.....then finally make a purchase. I don't mean with a broker, I mean with a company that allows you to buy directly from them. ( there are hundreds of companies that do this ) This is a spectacular way to get kids interested in making money or rather having their money make money for them ! THEY are NOT too young for this.... I started my son at age 13 and now he is setting prettier than most 50 years olds at the ripe old age of 20. All by his own doing but me teaching it to him.
School teaches kids how to spend and budget for more crap around the house,,, WHY NOT TEACH you child to purchase things that ultimately make them more money.... The more money you have the more you can do for others !!! I taught how to save and have your money make more money ! Which would you rather have your kids know ? !
2006-10-01 11:27:48 · answer #1 · answered by Kitty 6 · 1⤊ 0⤋
Here is what I do with my kids 13 and 16. I give them a basic allowance for things like movies, high school sporting events, cd's etc. I also give them a monthly clothing allowance. My 16 year old gets a monthly gasoline allowance. I deposit the money into their accounts (they have debit cards) and they spend it and they don't get a dime more until the next month. I have found that this method does a couple of things; one is that if they run out they have to go earn money and two is that I am not always opening up my wallet and turning over money. I am confident I am spending less using this method. My 16 year old has a job and I am weaning her off of some of her allowance.
2006-10-01 11:04:58 · answer #2 · answered by porkchop 5 · 1⤊ 0⤋
Yes. The executive run institution procedure does not desire too many persons to grasp an excessive amount of approximately how you can manage their cash They would simply determine that the federal government is screwing us with the taxes they accumulate, and the banks could no longer be equipped to escape with the scams they do if everybody was once trained approximately their cash. Just seem on the excuses that had been made approximately the housing mess the federal government obtained us into. Anyone with expertise approximately funds might see correct via their BS. But oh no, the federal government and politicians received once more pointing their arms at one one more watching for some way out and the general public fell for it once more hook line and sinker. We want extra categories to train dependable economic leadership, however it would possibly not be within the public faculties.
2016-08-29 09:34:32 · answer #3 · answered by ? 4 · 0⤊ 0⤋
there is so many ways to teach them . i also have 2 daughters and i take them for example for grocery shopping and let them know what budget we have and they pick up grocery with me. they are happy to be involved and i don't hear complains about -there is nothing to eat in this house. i do the same thing with with clothes shopping, tell them how much they can spend and there is their choice if this going to be one thing or three.
my 13 years old ask me for cell phone and besides i don't see a reason for her to own one yet, i agree to get her pre paid one , but she need to do extra chores around the house to pay for it. if she don't do the chores- no cell phone.
i thing my kids appreciated the value of the money and don't demand things from us, because they know ,that money doe's not grow on trees. we are not poor people and i really can afford to buy everything i want, but because me and my husband work hard for what we have this is the way i want to teach my kids.
my older doughter is 20 , she is in college and she work 2 part time jobs since she was 16. when she start working we tell her , that every money she will save in her bank- we will doubled and believe me, this will cost me a lot after she will finish her college, but i know she will not spend those money parting , because i'm sure we teach her well. she also maitain exelent credit and she is homeowner. to buy the house- it was her own money for down payment and she rent this house out . breaking even after all the expenses. we help her maintain the house.
2006-10-01 16:05:00 · answer #4 · answered by bianca 4 · 0⤊ 0⤋
Give them a allowance to cover some of the items you might usually buy such as clothes and treats, Let them budget to make the purchases
2006-10-01 11:02:40 · answer #5 · answered by lobo 4 · 2⤊ 0⤋
make them earn their allowance by paying them to do chores. have them get a savings account and have them put the $ in the bank. don't give them anything like clothing, spending money, etc. without them earning it. if they take a long shower charge them, if they leave lights on in a room they are not in charge them. that's what i have done, and trust me they have learned 2 things. not to waste electricity, and water. and they don't like when they have to pay a bill. MOMS BILL
2006-10-01 11:29:32 · answer #6 · answered by lidakamo 4 · 1⤊ 0⤋
show them your bank accounts! I know if it were mine, thats teaching enough! There isnt anything there
2006-10-01 11:05:25 · answer #7 · answered by Anonymous · 1⤊ 0⤋