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Ensure Your Business Continues For Generations By Teaching Your Kids About Money

By Timothy Moseri


Entrepreneurs have to become proficient in many different areas. One such area is managing savings. Continuing your company for years to come will also require your kids to learn the value of prudent money management. To begin with, lets review some fundamental ideas that can help educate your kids about the necessity of handling their personal economy and saving for their financial future.

Provide them allowance- Instill responsibilities into your children like taking out the trash, cleaning their rooms, and feeding pets. The level of responsibility, you see, should be connected to the amount of allowance, their personal finances, ages, and their capabilities.

Grow your kid's individual economy by helping them establish savings goals- Help them categorize things they want to save for-big and small- by creating a list. For example, have them put three stars next to things they want most, two stars next to things they desire, and one star next to ones want least. Also, categorize the items from least to most costly. To determine how much they think they can save, focus on the three star things they want the most.

Put their savings in the right place- Have them use labeled containers to keep savings and spending money apart. To keep their objectives visible, attach their savings container to a photo of "something special". If they would like to open a bank account, they could use different colored wallets for savings and keep their spending money at home.

Have your children track progress- While both kids and adults may find saving cash boring, you can help keep their drive going by making savings thermometers and painting in sections as money is saved. Keep logs for their achievements by placing charts in visible areas. Saving cash should be fun and rewarding, so it's important to recognize their progress.

Discourage impulse purchases- Savings goals can often become derailed by impulse purchases (e.g. that hot new toy). But this can be prevented by the following advice:

Remember your savings objectives- To prevent the temptation to make purchases, have your children carry a picture of what they are saving for.

Leave behind money- Avoid impulse purchases by only bringing a minimal amount of money for shopping.

Leave some money behind- Spur-of-the-moment purchases can be avoided by only taking a limited amount of money when shopping.

Ask for help in putting savings in the right places- If you think they will be tempted to spend, you can help keep their savings in a safe place.

Consider your purchases- Their "wants" and "needs" should be categorized; to assure this, have your children avoid purchasing anything for at least two weeks.

Your kids will certainly take much pride in establishing a savings pattern that helps them meet their financial goals. It would even be good to consider matching their funds when they can prove they are responsible about saving good amount of cash. The financial ideals you teach your children early on will increase the chances of your business continuing for decades to come.




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