Various studies show that our educational system doesn’t give much emphasis on teaching our children financial responsibility, thus, creating a culture of debt-burdened population. Where everything is easily procured and spent, it is paramount to our children’s future success to teach them financial responsibility from a very young age.
Teaching financial responsibility to children will give them the financial foundation they need to act sensibly as adults. Studies show that people who learn financial responsibility at a young age also have less debt and more savings when they become adults.
In a consumer-driven culture like ours, money management has become one, if not the greatest, ills of our society. I’ve seen people from all walks of life- either they’re making $30,000 or $300,000 annually- crumble from debt because of poor money management and planning.Here are ways to begin teaching kids the fine art of money management:
Consider giving your child a regular allowance. A weekly allowance is a good way to start your kids on the path to fiscal fitness. Allowing them to start handling their own money can empower them with a sense of responsibility.
Set a good example. Kids learn more than you realize by watching you, so the habits and ideals you embody will be passed on to them, whether you want to or not. So make sure you practice what you preach by not frittering money on frivolous, useless items (unless you get use or enjoyment out of them, in which case they’re not frivolous). Or better yet: take your child with you when you make a deposit at the bank or withdraw money so they become accustomed to the idea of saving and spending money.
Set goals for your children. If your child wants a new toy or video game, don’t be afraid to say no. If you decide to make that purchase, figure out how he or she can earn the toy by doing a chore or helping clean up his or her room. This can help the idea that work produces results.Turning 12, my daughter now manages her money from weekly allowances and helping babysit (her little sister) and ensures that at the start of each month, either mom or dad deposits at least half to her savings account for college. She gets to write on her own deposit slip, too.
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Evangeline can be reached at her marketing location at the Ground Floor of Eagle Rock Plaza (in front of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041 or at her business address at 655 N. Central Ave., 17th Flr., Glendale, CA 91203, phone number (323) 356-3803 or (323) 254-6787.
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The purpose of this article is to provide information of general interest to our clients and prospective clients. The information provided is general in nature and should not be considered complete information on any product or concept described.
( Published on May 30, 2009 in Asian Journal Los Angeles p. C5 )
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