Preparing your children for financial matter is important. (Image via: Balanced Cents)

Editorial: Financial Management for Your Children

It is time for you to have this talk with your children. When the world is getting more advanced and faster, parents need to teach their kids a lot of things for their future. One of which is how to save their money and how to be wise in terms of financial management.

While some people think there are a lot of things better to be educated, the financial management value is one of the most integral value. Kids nowadays tend to be ignorant when it comes to financial management, and they tend to overspend. This consuming behavior, if we let this be, will only lead to grave end.

By teaching their kids how to be financially wise, they actually save their kids’ future from poverty or other fatal financial mistakes. There are four ways in teaching your kids to be financially wise.

First things first, as parents, we need to pass the torch to our children. It is true that they already learned about money in their school. Nonetheless, as parents, it is our duty to lead our kids on the path to financial wisdom.

Statistically, only 6% of parents around the world admit that they learned about financial management in school, and most of them learned it at home, from their parents. Hence, it is absolutely important to equip your kids with your own experience and knowledge.

The most fatal mindset ever given to children is that they have no responsible over budgeting, and financial management. As matter of fact, they need to be taught that they are also in charge over their own budgeting.

In other words, let them make their own list of priority and also guide them in setting it, starting with their pocket money. Since they are aware of it, they will be more careful in their spending. This way, children will develop their own financial decision making trait, proven useful in the future.

Last but not least, give your children their own bank account. About 57% of parents around the world assign a bank account to their children under their children’s name, not theirs.

By giving your children a bank account, they will be more independent, and of course, they will learn the significance of saving their own money for the future use.

In conclusion, financial education in a family is vital to the future of our children and our next generation. Should this healthy tradition be stopped, our generation will never learn the significance of financial management, which leads to debt, financial crisis, and even poverty because we realize that hard work is futile, if you cannot manage your money right.

Source: https://www.independent.co.uk/money/spend-save/financial-education-budget-money-spending-credit-cards-pension-a8947931.html