Financial Prison, Don’t Let Your Kids End Up There!

Prison is not a place any parent wants to see their kids wind up. We as parents want nothing but the best for our children. It is every parent’s dream that their children will do better than they did. Children are not perfect; they do occasionally get off path in life and with money. As good parents we will always do what we can to get them back on track.

When it comes to finances and kids, it never seems that enough planning goes into their financial future. Money is of great importance in our society. It pays the bills, puts a roof over our heads and buys us all kinds of stuff. Most children don’t seem to have a problem spending money, but money and finances are a two way street. Along with the spend part there has to be a save part. We live in a now society and if we don’t teach our children (NOW) how to handle money, they may be in for a rude awakening.

Living in a credit card driven society spending has become very impersonal. Think back to when you were a child and you asked your parents for a toy and they said “You can pay for it with your money”. Do you remember the emotions of having to go into your piggybank and take out your money? Emotionally it took a toll on you. Grant it that most children don’t have a credit card at the age of twelve but our children watch us as their parents and other adults around us use credit cards. For us as parents and for our children there is no emotional attachment to using credit cards versus uses cash.

Here are a few strategic tips to help keep your children out of financial prison:

Have a plan – The best method I have taught families is when both parents sit down together and work on a financial plan for their children. The great thing about this is that you can do it for any age child. Just start where your kids are at now.

Start them off young – One of the simplest things you can do is to start them off with a savings plan. Work with your children and get them used to saving instead of just spending. Piggybanks are a great way to start them off with a savings plan. It is not only simple but it is convenient.

Keep it simple – Don’t get carried away by trying to get them to major in finance at the ripe old age of seven. Keep your financial education plan age appropriate. There financial are steps you can take with children and adults of all ages. Work with children at their level when it comes to money.

It is our job as parents; NO it is our responsibility as good parents to teach our children how to properly use money and how to control their finances. So as they go off on their own their finances don’t control them, this will help to keep them out of financial prison.