By Bizna Brand Analyst
Today’s parents are so busy with their own lives, they don’t take the time to sit down and help their children understand money-related. As a result, kids end up making many bad decisions as they grow up.
Money is what determines whether you will live comfortably or not. If you don’t teach your kids how to budget, they might not really turn out to be the kind of people you want them to be. But the question is, how are you supposed to go about it?
Set an example.Take your kids with you when you buy mboga or when you step into the supermarket and talk to them about your choices. Show the difference in price between the brand name and the shop. Explain why you’re buying one thing instead of the other
Little eyes are watching you. If you’re spending carelessly every time you are out with them, they will eventually notice. If, at the end of every month, you and your spouse are arguing about money, they’ll notice. Set a healthy example for them and they’ll be much more likely to follow it when they get older.
Let your kids see how saving has been beneficial to your family. Let’s say your car breaks down. You could simply have it fixed and move on, or you could turn the situation into an opportunity to educate the kids. Let them know that the car needs repair and that you are able to pay for the repair because you save money out of every paycheck to cover emergencies. Then, get them to talk about what may have happened if there weren’t funds in the bank to fix the car. Likewise, if you are able to take family holidays or purchase luxury items, kids should know that this is because you have saved the money to make these purchases.
Don’t bail them out if they make bad decisions.If your daughter decides to spend her entire pocket money on one pair of jeans, don’t bail her out by buying her the shoes she wants after she has no money left. You have to have a little bit of tough love. Your kids have to live within their means
Basically it’s about showing opportunity cost.That’s just another way of saying, “If you buy all those trendy things, then you won’t have the money to buy that pair of shoes. Your kids should be able to weigh decisions and realize that each decision has a consequence.
Give your children opportunities to earn more.Younger children can earn money by doing extra chores, and older children can help with a family business or work for neighbors and friends. This will enable them grasp lessons of responsibility and entrepreneurship,
Help them to divide the cash you give them. Use graphic methods such as envelopes or jars to divide money into posts for spending and saving. Be clear about what the allowance is expected to cover. Make it known that once they exhaust a certain amount, they have to wait a while before you can give the some ore money