One of the questions I get asked regularly is about how I felt when my eldest children left home and went off into the world on their own for the first time. After I reply that it was bitter sweet but rewarding, people seem to want to know about the more important question: how I raised my kids to be responsible adults adept at handling their own finances!
Increasingly, it seems that young people are staying under their parents own roof longer than ever and this so called ‘failure to launch’ has some experts worried that our kids’ generation has been enfeebled by too much hand holding and financial support. I am here to tell you that this does not have to be the case – empowering your children and teaching them about their own financial fitness can be done at any age. Here is a list of the things that I did with mine, from the time they were tiny and wee until just last year!
Increasingly, it seems that young people are staying under their parents own roof longer than ever and this so called ‘failure to launch’ has some experts worried that our kids’ generation has been enfeebled by too much hand holding and financial support. I am here to tell you that this does not have to be the case – empowering your children and teaching them about their own financial fitness can be done at any age. Here is a list of the things that I did with mine, from the time they were tiny and wee until just last year!
Give them an allowance… and chores – Most children in the UK get pocket money from their parents, but do all have to earn this cash? Do not – and mean do not! – give them any money without insisting that they earn it by doing age appropriate chores around the house.
Own your own business? Simple bookkeeping and filing tasks can be delegated to kids from the time they are 12 years old.
Involve them in the budget planning – We always had a quarterly household budget meeting during which we treated the kids like shareholders in the ‘business’ of our family. They saw how my husband and I planned the budget, realised that money comes with responsibilities and always knew the justification for why we spent money the way that we did. We also let them have a say in what to do with surplus ‘treat’ money! Involving kids in budget planning is an excellent way to teach them about their future.
Own your own business? Simple bookkeeping and filing tasks can be delegated to kids from the time they are 12 years old.
Involve them in the budget planning – We always had a quarterly household budget meeting during which we treated the kids like shareholders in the ‘business’ of our family. They saw how my husband and I planned the budget, realised that money comes with responsibilities and always knew the justification for why we spent money the way that we did. We also let them have a say in what to do with surplus ‘treat’ money! Involving kids in budget planning is an excellent way to teach them about their future.
Show them your credit report – Use your credit report to show your kids the importance of staying on top of your personal finances, and encourage them to check their own credit report at least once per year in order to protect against identity fraud and a bad rating.
Model good financial behaviour – This one is probably most important. If your kids see you frazzled or scared by your own financial situation they will learn that money is something baffling that cannot be controlled. By showing them that you are well in control of your finances and your credit report you are showing them how to act in their own lives as adults.
Some parents wonder if they should help their kids learn about life by letting them fall flat on their feet or babying them into adulthood, but I say neither. By empowering and educating them about money you can find a comfortable middle ground and ensure that your little birds leave the nest with their heads screwed on the right way about money. This is one of the best gifts you can ever give your kids.
Model good financial behaviour – This one is probably most important. If your kids see you frazzled or scared by your own financial situation they will learn that money is something baffling that cannot be controlled. By showing them that you are well in control of your finances and your credit report you are showing them how to act in their own lives as adults.
Some parents wonder if they should help their kids learn about life by letting them fall flat on their feet or babying them into adulthood, but I say neither. By empowering and educating them about money you can find a comfortable middle ground and ensure that your little birds leave the nest with their heads screwed on the right way about money. This is one of the best gifts you can ever give your kids.
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