As a parent, one of the most important yet trickiest things to do is to teach your kids financial responsibility. The lessons don’t come easy. But they need to be conducted so your children can develop good money habits from an early age.
But even when this objective remains a bit difficult, it is not impossible. With the help of a few tools and practices, you can easily teach your kids the value of money and the optimal ways to manage it.
See more if you want to teach your kids financial management early, the following suggestions can help you achieve this objective with the utmost ease.
Use Mobile Accounts and Virtual Debit Cards for Kids
Thanks to mobile bank accounts, you can now introduce your kids to the concept of modern banking in a few easy steps. While the management of these accounts is supervised by you, you can still allow your kids to spend money according to their needs.
With next-generation options such as the Jassby Virtual Debit Card, you can also introduce your kids to the concept of electronic transactions. This virtual debit card enables contactless payments through Apple Pay, which lets your child use their phone for in-store transactions.
This particular practice familiarizes your kids with digital banking procedures. At the same time, the concept of managing a bank account encourages them to handle their money more responsibly.
Pay Your Kids an Allowance for Completing Chores
To teach your child the importance of working for their reward, you can tie a specific amount of allowance to certain chores. Depending upon your child’s age, this could range from helping you set the table to assisting you in folding the laundry.
This particular practice makes it easier for your child to understand the concept of basic earnings. You can then help your kid spend their newly obtained money on a justifiable purchase. You can also support them in their decision to save it for later.
You can set the amount of the allowance according to what you think is appropriate. But ensure that it is not too excessive to the point that it sets sky-high expectations in your child’s mind.
Practice Saving for Larger Goals and Purchases
Another way to instill financial responsibility in your kids is by encouraging them to save their allowance for individual purchases. While you provide them with all the necessities that they require for a healthy lifestyle, these savings can go towards more luxury purchases such as a new gaming console or an advanced gadget.
Apart from manual savings, you can also use purpose-built tools such as banking apps. These solutions can help your children track how much they have saved in their account and how much amount they need until their big purchase.
Following this practice delivers various benefits. For one, it encourages saving from existing income for future rewards. Additionally, it enhances your kids’ ability to calculate their finances according to their needs.
These basic practices go a long way towards making your kids more financially knowledgeable. As a result, you can continue fulfilling your duty to make your children into responsible adults.