As a parent, you would definitely want your kid to lead a dignified, independent and self-sufficient financial life. But have you ever thought of making the right ground for them to evolve and grow up as a financially responsible adult? This ArthaYantra post helps you grab quick helpful tips.
Help them build the right attitude towards money. Building proper attitude is essential to growing up as a responsible adult and kids pick it up from their parents. So check if you are giving wrong signals or messages to your kids with your money behavior. Be a person who believes in making the right financial decisions, however, small be it, and take the decisions only after deliberation. If you are have been swiping your card carelessly for impulse purchases or spending money without giving a right thought over it, you would end up sending extremely wrong signals to your kids.
Drawing or offering unlimited money or amount without purpose from may be dangerous for their well-being. Kids should learn that the money is a limited resource. So, agree on a monthly allowance and stick to it. Let children be exposed to the budgeting exercise and let it be a joint affair. Together, work out on needs for food, books, travel, etc, so that he would understand the pattern of allocation based on the priority. Also, ensure to transfer or offer the fixed amount as per the promised date. It helps them learn to wait for the money and manage till then. In case your child intends to spend more on luxuries, encourage him to take up some part-time work to earn a bit.
Teach children about managing electronic wallet and making safe online transactions. Online money transactions minimize the usage of cash and eventually unnecessary spending. They should learn the basics of safe net banking and safe use of credit or debit card online. They should be aware of what to do when they find a misuse or theft of their cards.
Kids should be taught about splitting and sharing the bills when they go for a joint trip or restaurants. Lending money to friends without purpose can be an avoidable habit that has to be developed from the childhood.
More importantly, teach them that money will wean off over time and thus, it is essential to earn and save to lead an independent financial life, at least after they graduate. Help them maintain a good credit score. Especially, defaulting their education loan would badly affect the credit record.
Offer every possible experience and the right environment for your child to be able to grow up as a financially responsible adult. After all, that is the most important thing needed to lead a dignified and secure life. More more information and advice on personal finance, approach ArthaYantra -World’s only full-service robot-advisory.