Personal Finance

How Teaching Your Kids About Personal Finance Can Save You Money

By Krista

If you have kids, you know how difficult it can be to go anywhere with kids without them asking you to buy them something. Whether you stop at the gas station and they ask you for a drink or candy bar or you are at the mall and they ask for a new pair of shoes or any number of other places, they will almost always ask for something with the hope that they convince you to withdraw some money from the nearest ATM machine. The fact is, however, that by teaching your kids about personal finance, their knowledge that money doesn’t come out of ATMs with the passing of a wand may be enough to help them understand that they don’t need something everywhere they go, and may even save money as well.

Strategies for Providing Kids With a Financial Education

There are numerous ways you can start teaching your kids about earning, spending and saving money, and you may tailor different strategies depending on the age of your own kids. Providing kids with an allowance for doing chores around the house is one way you can teach them about money. They will learn just how hard it is to earn money, and they will learn the value of money first-hand when they see how many chores they have to do in order to pay for those things they want in life. By forcing kids to use their own money to purchase things, they will stop asking you to buy those things. Older teens may benefit from opening a checking account, using a prepaid debit card and more.

How This Helps You

The average consumer in Canada owes over $25,000 to creditors, and this does not include the amount of money owed on their home mortgage. Many are looking for tips for getting out of debt because paying off such a significant amount of debt can be a challenge. Controlling spending is among the biggest challenges that Canadians face, and kids’ constant requests to buy things only adds to that challenge.

When kids learn more about money, they naturally may stop asking for so many things on their own. More than that, when you provide them with an allowance, encourage them to get a part-time job when old enough and more, they will have a source of money that allows them to pay for those things they want. Once kids realize how much work is necessary to pay for even one of the items they want, they may be more discerning about what items they really want. Ultimately, teaching kids about money can help you to spend less money on frivolous items so that you can pay off debt in Canada.

Kids Learn Through Observation

While some steps, such as providing kids with an allowance and showing them how a checking account works, can help kids to learn how to manage their money, learn the value of money and more, you should be aware that kids learn through observation. They do watch how you manage your money through your actions. For example, they may watch how you save up money to purchase an item that you really want rather than impulsively run out and buy it with a credit card. With this in mind, if you are struggling with your finances today, you may consider seeking debt help. Paying off your debts and learning improved money management strategies can not only help you get out of debt but it can also help you to provide your kids with a sound financial education.

If you are one of the many Canadians who are struggling with debt, you can learn more tips for getting out of debt at http://debt.ca. You should consider learning more about money management and taking steps to seek debt assistance if needed.