Teaching Money Management: A Lesson for Spoiled Children and Their Parents
As parents, we want to give our children the best of everything. We want them to have the best toys, clothes, education, and experiences. However, in our desire to provide for them, we sometimes forget to teach them the most important lesson of all – money management. We fear that disciplining them or withholding anything they want might scar them psychologically. But, it is our responsibility as parents to guide them towards becoming responsible and functional adults. In this article, we will discuss how to teach our children money management, one of the most critical skills they need to learn to become financially independent and secure adults.
Set Up an Allowance
One way to start teaching kids about money management is to provide them with a fixed weekly allowance. An allowance will teach them budgeting and managing their money to last until the next allowance period. Initially, you may have to guide them on how to allocate their allowance, such as setting aside some amount for savings, spending, and giving. Eventually, they will become familiar with the basics of managing their money.
Be Firm with Allowance Amounts and Schedules
As much as we want to give in to our children’s requests, we should be firm with the amounts and schedules of their allowances. If they spend all their money before the next allowance period, don’t bail them out. Instead, let them face the consequences of their actions. This will teach them that their decisions have consequences and that they need to think about their purchases before spending their money.
Set a Good Example
Children learn by example, and parents are their primary role models. If we want our children to learn to manage their money, we need to set a good example for them. We need to show them that we make wise decisions, save money, and avoid impulsive purchases. We should also explain to them why we can’t always buy everything they want and that we have to choose which things are more important to spend our money on.
Children should learn to set goals and work towards achieving them. If there’s a toy or treat they want, teach them to save for it instead of buying it outright. This will teach them the value of delayed gratification and the reward of working hard to achieve their goals. As they grow older, they will learn to set more significant goals such as saving for college or a new car.
Include Them in the Bill-Paying Process
Parents can also show their children where the family money goes by involving them in the bill-paying process. They need to understand that everything comes with a cost and that we need to prioritize our expenses. This will give them a greater appreciation for the value of money and how to use it wisely.
Teaching our children money management is one of the most important lessons we can impart to them. It will help them become responsible and functional adults who know how to manage their finances. By setting up an allowance, being firm with allowances, setting a good example, setting goals, and involving them in bill-paying, we can teach them the critical skills they need to become financially independent and secure. It’s never too late to start teaching our children these skills, and it’s never too late to turn things around for a spoiled child.