Personal finance is a simple topic at first, but it gets complicated when you dive deeper. Personal finance is not something you can learn in a day or two; it may take you years. You can never be the best, but you can better yourself each day. Many people stress personal finance when they have stuck in an emergency or any situation which requires a handsome investment.
Better teach your kids about finance at an early age. Researchers found that teaching kids about money is much more than merely showing them how to budget and save. It will give them a clear idea about the positive and negative aspects of money. Follow these suggestions:-
Give an Allowance
Giving an allowance is perhaps the best way to teach your children about money management. It’s a simple yet powerful tool to help them learn about budgeting, savings, and prioritizing their spending. As per a recent poll conducted by creditcards.com, nearly 40 percent of children under 18 receive an allowance.
Although many children get $1 per week, there is no “right” amount for your children as it depends on family income. Moreover, a child’s activity and the financial responsibility you want your child to take on play a significant factors.
Teach to Save, Give, and Spend as Personal Finance
According to the famous finance columnist Ron Lieber, it’s necessary to teach kids about saving, giving, and spending money carefully. According to him, kids should use three jars labeled “give,” “save,” and “spend,” and they should divide the allowances between the three based on priority.
Kids are bound to commit mistakes, but this experiment will teach them a lot about the value of money and how to prioritize things. Moreover, they will perform this experiment under their parent’s supervision and inside the safety of their home.
Include Kids in Your Bill-Paying Process.
Each month you receive a lot of bills like utility bills, cell phone, cable, internet, insurance, grocery, energy, credit card, and other miscellaneous bills. Having an understanding of monthly costs is a critical component of becoming knowledgeable about money.
Show your kids what a bill looks like. What are the various products and services you pay for each month also show them the way you budget it.
Talk to Your Kids About Your Expenses.
Always include your kids when you talk about expenses. Often, parents exclude their kids while having a conversation about money. As per the experts, talking to your children about goods and services cost, especially the daily usage of things like internet, and cable, will help them understand what is paid and what is free.
So, the next time they want to rent a movie or go online, let them know how much it costs. Also, compare that amount with something meaningful like books, groceries, cable, internet, and cell phone bills. It will give them a clear idea about where to use money effectively.
Teach your kids how big service providers take advantage of their customers. It’s a great personal finance lesson that would help your kids in the future. BillTrim never lets you overpay on your monthly cell phone, internet, cable, insurance, and energy bills. All you need to do is share your bills with us, and we’ll lower negotiate lower them in minutes.