A good parent has many responsibilities towards his children, but one important lesson that is being overlooked is the value of money. Kids nowadays don’t know how hard it is to earn a profit. They only realize how difficult a life of frugality can be when they’re finally out on their own. This is especially true of college students incurring a ton of student loans because of a lack of proper financial training.
In order to prevent this, parents can start teaching their kids all about how to handle money properly as early as their preschool years. A good parent doesn’t even have to do anything in order to teach his children well. In fact, this is the hallmark of basic training; showing children not to spend money is the same as showing them how to save money
. If a parent has the habit of buying anything or everything he fancies, then his children will think that needless buying is alright. If a parent is more frugal, that habit can be passed on to his children.
A popular way of teaching children all about earnings is through their allowance. Parents can set a limit to how much their kids can get per week, but also add to that amount if their kids do more chores. They can also deduct from their kids allowances if they miss their homework or other responsibilities.
Opening up a savings account in the children’s name can also help them appreciate the value of a dollar. Many savings banks have a junior savings program. Parents can then ask their kids to deposit an amount every week or month. Pretty soon, they’ll be saving enough for their own college degree.