6 Tips for Helping Your Child Develop Healthy Money Habits : For a child to develop healthy habits when it comes to money, they must first learn the basic rules and the origin of money. Also, there are certain skills and habits that children can adopt with the help of their parents. We will give you tips on how to develop healthy and useful habits for your children so that they are ready for the future that awaits them.
Children will have to acquire skills, tasks, and habits related to independent earning, making an investment and savings plan, and donating money to charities through debit cards for kids.
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Open communication about money
Parents should have open communication when it comes to money, and explain to children the source of money and how it is earned. Money is earned by hard work and does not fall from the sky, nor does it come abundantly from magic machines (ATMs). Parents have to work hard every day to be able to afford their family everything they need.
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Big difference between wants and needs
From a young age, children must master the difference between recognizing what is needed and what they want. Every parent would like to fulfill everything for their children, but there is a limit. Necessities are what parents have to spend money on for the family to have a comfortable and normal life such as paying bills, mortgage, buying food, drinks, clothes, and shoes, paying utilities, and many other additional expenses that arise.
Sometimes parents can fulfill some of their children’s wishes, but it must all be within certain limits of normality. In this way, children will better understand that they must not be greedy, but that they are part of a community that must function as a whole and that all members participate equally in it.
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Work harder, earn more
Encourage them to take on extra jobs within the household or neighborhood, such as helping elderly neighbors or, if they are elderly, finding a part-time job. If the children are smaller and perform additional household chores every day, then you can put them on the payroll or increase their pocket money by a certain amount.
Children can perform various types of jobs depending on their age, such as walking dogs, selling lemonade, shoveling snow, babysitting, and many other jobs for which your child has the desire and predispositions.
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Setting up a savings plan
Children must find a bigger goal for saving to have the motivation and desire to save every day. Depending on the agreement with the parents, a certain percentage of pocket money or earnings is set aside and put into savings, this money can not be touched until the children reach a certain age.
Some children want to save up to travel around Europe, some to buy a car or to move away from their parents and some for the faculty they have always dreamed of. Every child is different, here it is only of utmost importance that this should be the goal of the child and not of the parents. Because children can lose interest over time and you need to keep them motivated.
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Give them the responsibility of owning a children’s credit card
Many parents opt for this type of learning about financial literacy and all spheres of finance with the possibility of developing task performance skills through activity tables. Parents have full control over the activities their children perform.
Through this option, children can earn, spend, pay, invest, donate, and save money and everything is in one place and at any time all account balances are a click away from checking. Performing tasks and activities through tables teach them responsibilities that come later in adult life, such as helping and completing household chores with a deadline.
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Don’t save them – let them make mistakes
When children make mistakes, the goal is for them to learn on their own how to get out of the problem and correct the mistake. The easiest thing is for you to save and help them, however, they will get used to your help.
Children must take responsibility for their actions and bear the consequences of them. Also, under pressure, they must learn to think rationally and not give in to bursts of emotion. Mistakes are the best way to learn and let them go, they will find a way to solve the problem, do not worry.
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