Money management is one of the most valuable lessons parents can teach their children. Every item that you possess was produced and paid for with money. If you have money, you can provide for yourself and help others who are less fortunate. The more efficiently that you manage money, the more control and independence you maintain over your life.
Never Too Early
Since managing money is a part of the whole, you cannot begin too early to teach children to manage resources. It is natural for children to sprinkle bath powder all over the room. It is exciting and funny. However, if the behavior is tolerated, the child will continue to be wasteful of everything. You have the perfect opportunity to teach the child that bath powder has a specific purpose.
The parent should be firm and quietly tell the child that the powder is not to be used in a wasteful manner. Although the child may not understand the language, you have begun training the child not to waste.
Giving preteens an allowance is a good way for them to learn money management. You should let them have some freedom to make mistakes, but you should also give them guidance in helping them determine how best to spend their money. You might have them saving part of their allowance to buy something they want or need. The rest of their allowance may be spent in any manner they choose. However, you should make certain that they will not receive any additional money before their next allowance day.
Lessons for preteens should include saving for a special item and stretching their allowance through a pay period. When they become adults, they will not reach for the credit card and overspend before their next payday.
Lessons for Teens
Families that do not make budgets are missing opportunities to manage their cash flow and communicate with their teens. These missed opportunities can be disastrous to both finances and family relationships.
Although teens may offer strange ideas, you should listen carefully to what they are saying. Teens can learn valuable lessons in helping plan the family budget. This is a good time to reinforce the preteen lessons of saving for purchases and stretching cash to the next payday.
Coupons and Promo Codes
Manufacturers’ coupons and promo codes can stretch valuable budget dollars. Have your teens search newspapers and online for coupons to be used on your next trip to the mall. However, don’t stop with grocery coupons.
There are many other coupons and promo codes available. For example, if you have automotive needs, you can check JC Whitney coupons and JC Whitney promo codes before buying any item. Every online purchase should be preceded by a search for the product coupon or a dealer coupon or promo code.
Help With the Budget
Let your teens help with the budget items. Show teens the difference between the essential and discretionary expenses. Remind them of the lessons learned when they were getting allowances.
Credit cards make it tempting to overspend. However, the lessons learned as preteens and teens should have created self discipline so that your child does not overspend.
On the other hand, you should remind teens that paying the full balance by the due date is the best way to use credit cards. In addition, you should teach them how to use credit cards to maximize cash back rewards.