Are You Setting A Good Example For Your Kids In How You Handle Debt?

Teaching your children about looking after their finances is something that every parent needs to think about to make sure that they are giving their children the best attitude towards money. But when it comes to teaching our children about the importance of every aspect of finance, including debt, are we, as parents, the best example? The amount of debt that we all tend to have now is mounting, from credit cards to essentials like a mortgage, and so we can all benefit from learning, not just how to speak to your children about debt, but also to set a good example about how we handle financial struggles. So how can you do this?

 Are You Setting A Good Example For Your Kids In How You Handle Debt? - mother and child image

Wikimedia

Communicating The Effects Of Debt

This is the best place to start, depending on the ages of your children, you may want to sit them down and very simply give them a little bit of handy advice about the effects of debt. You may remember yourself, as a child, seeing your parents discussing bills and the atmosphere getting quite heated, so to avoid these kinds of scenarios, you would be better off speaking about the effects of debt to your children. It can be a difficult line to tread, but many debt advisory companies talk about the impact of things like bankruptcy on families, and they say the best approach is to be open and honest. You never know, they may be more understanding about why you have to do an extra shift at work.

Show Them You Are Taking Positive Steps To Get Out Of Debt

Another way of setting that example is to try and get out of the hole that you dug for yourself. If your children can see that you are making valid attempts to redress the balance, this will teach them a very valuable lesson about money, the fact that you’ve made a financial mistake and are trying to rectify the problem speaks volumes. Not that debt should be something that is okay for your child to get into when they are older, but understanding that there are resources out there to help you get out of financial problems, like various websites such as debtrelief.xyz, and debt consolidation companies. But rather than teach your children the lesson that it’s okay to get into debt because there are things around to help you, it’s more important to teach them proper habits about spending money.

 Are You Setting A Good Example For Your Kids In How You Handle Debt? - kids and money image

Flickr

Practice What You Preach

Setting a good example for any child, regardless of their age, is something you need to think about. Many parents talk the talk, but when it comes down to walking the walk, it never happens. Again, this may be something you remember from your childhood, your parents telling you not to do something but they did it anyway. And while hindsight is a wonderful thing, if you really want to set a good example for your children in how you handle money, you need to make sure that they see you handle money in the right way. From paying bills promptly to being methodical with your finances, these are all things to think about.

Being more methodical with your money will benefit you anyway, so why don’t you start to do this now? With infinite financial resources online and even financial calculators like thecalculatorsite.com, setting an example for your children in how you handle it is an excellent life lesson for them to learn as soon as possible.

Teaching Your Kids About DIY

We all know that the things that you learn from a young age stay with you for the rest of your life. Not only does teaching your kids about DIY give them some invaluable practical skills, it will also help them to save money in the future as they won’t have to hire expensive contractors every time there is a problem around the home.

Teaching Your Kids About DIY - workbench image

Photo Credit

You may just be doing a couple of simple jobs around the house or you may be involved in a major project that requires a steel building from Armstrong Steel. Either way, it is a good idea to teach your kids the basics while ensuring that any tasks that they do take part in are completely safe. Here are a few ideas about what they can do.

Measure Twice, Cut Once

You will probably be well aware of the old adage measure twice, cut once, but accuracy is one of the most important lessons that you can teach your kids so that they don’t have to go back and do a job all over again, which is not financially sound. Teach your kids how to read a measuring tape and make sure that they know to always double check their results. Once they become more experienced, allow them to do the measuring all by themselves.

Drive Screws

Before letting your kids loose with power tools, you will want to make sure that they are mature enough to handle them and the whole process is completely safe. A good starting point is a powered screwdriver which doesn’t spin at the same rate as a drill and the bits aren’t as sharp so it is less dangerous. Make sure that you supervise them well and you can teach them the valuable skills of patience and coordination.

A Lick of Paint

Teaching Your Kids About DIY - paint pots image

Photo Credit

Painting is a great DIY task to teach your kids as it is one of the safest that you can allow them to get on with. To start off with, you can get them enthusiastic about it by heading down to your local paint store and allowing them to pick out the colours themselves. Afterwards, you can teach them all the basics involved in the process including preparing the paint, using different methods (brush, roller etc) and the cleaning up afterwards.

Organising the Toolbox

Though it may not seem as exciting as some of the other jobs that you can tackle, organising the toolbox with your kids gives you the opportunity to show them each individual tool and explain in detail about what they all do. In the future, this will make it much easier when you decide that it is time to teach them how to use them.

Remove Nails

You may think that hammering in nails is a little too dangerous right now, but you could teach your kids to remove nails instead using the other side of the claw hammer. Make sure that they aren’t buried in too deep as this is when things can become a little tricky.

Traditional Fables And Their Money Lessons

Traditional Fables And Their Money Lessons - story book image

https://pixabay.com/en/book-story-fairy-tale-2341083/

There are lots of fairy tales and fables that can teach children about how they should lead their lives. Even classic Disney films are filled with lessons that children can pick up on. Most of these tales teach children how to deal with difficult decisions and social situations. But there are also some that can teach kids the importance of looking after their money. Here are just a few of them.

The Boy With The Nuts

One day, a young boy finds an open jar that is filled with lots of different nuts. He plunges his hand inside and grabs as many nuts as he possibly can. He then tries to pull his hand out of the jar but finds that it gets stuck. His hand, when filled with all the nuts, is too large to come out of the opening. A passing man sees what is happening and tells the boy that he would be able to get his hand out if he were satisfied with less.

What can kids learn from this tale? The main lesson is that it’s perfectly fine to think big, but you shouldn’t try and grab everything at once. This can apply to your financial goals. Rather than focusing on one large end goal, you should set yourself smaller, more achievable targets.

The Old Miser

Once upon a time, there lived an old miser who sells all of his possessions in exchange for one lump of gold. To keep his gold safe, he buries it in his garden. Someone who works for the old miser sees him bury the gold and then, once the miser is asleep, he goes outside and digs it up. When the man wakes the next day, he finds that his gold has gone. When he complains to his neighbor, the neighbor says he shouldn’t be so upset as he didn’t do anything useful with the gold.

The main lesson to take from this is that it’s important to put your money to good use. Otherwise, you might end up with a bad credit rating and could end up becoming financially dependent on installment loans for people with bad credit or other types of financing. Whenever you have any spare money, you need to save it in a high-interest savings account so that it grows for you.

The Inattentive Deer

One day, a deer is feeding on the coast. She is worried that a farmer will come through the field and shoot her, so she feeds with her back to the sea so that she can keep an eye on the fields. However, while she is so focused on the fields, she doesn’t notice some fishermen come from the sea and throw their net over her.

From this fable, children can learn that it is important to stay focused on all of their future investments. Don’t overcompensate on one by only taking notice of that one. Otherwise, your others might suffer!

Fables and fairy tales are a lot more than just fun stories. Most have some very important financial lesson hidden within them!

What They Don’t Teach Them In School

money, what they don't teach at school - child on dock image

Picture Source

Getting your children to learn the importance of money can be one of the most valuable things that they will ever be taught. Unfortunately, schools around the world still are not grasping on to the idea that the more knowledge we impart about the world of finance for when they reach their adult years, the more that children will take on board and be able to utilise it to their own advantage with the next generation. With that in mind, what are the top three things that we need to be teaching our children now, while the time is right?

Save Carefully

It’s hard to expect a child to be able to save all of the money that they receive, but there are good incentives to set for them to want to do it. Paying them for simple jobs around the house such as loading the dishwasher and sweeping the leaves from the front lawn will teach them that they have to work hard for what they receive and rewards come alongside this work. Taking care of their money for them, or at least giving them the option of you taking care of it, will see you acting like a bank. Even teaching them the value of getting loans from New Horizons or other such lenders can help them appreciate just how far money gets people. Let them see the importance of watching their money grow and learn for themselves just what they are able to purchase with it. They may even want to open their own bank account if they haven’t got one already.

Consider Your Options

Teaching your children actions to their consequences is hard when they aren’t fully aware of what options are available to them. For example, they could put their money into saving accounts, ISAs, bonds – there is a wealth of choices available to them, and most adults don’t even know a good enough amount about them to warrant a good explanation. It can be something that you can learn about together; you may find that you are stashing your money in the wrong place when you find out about what the best option for your child is. It’s all one big learning curve that doesn’t stop as you get older – you are simply just more aware of what’s available.

Make Good Choices

What’s good and what’s bad when it comes to money? Live off of your own experiences and recall them to your children. You know where you will have made some bad choices in the past, but children are best taught from your own experiences rather than you trying to explain what might happen. Think of it as taking a history lesson from somebody who has gone through the actual event – a bit far fetched, but the sentiment is still the same. Or, if you know what path you should have gone on to get yourself in a financially sound position, try and guide them along the one that you know that you should have taken. Our children may not be taught how to make financial decisions in school, but they can learn from us and what we have picked up along the way.

Tips on Teaching Children About Money

Children tend to think that money grows on trees. Most children can’t walk through a shop without asking if they can have something. A simple ‘no’ may result in a meltdown if you have an infant in the family. It’s all part and parcel of parenting, but so is teaching your child about money. There will come a day when your children will have to know that you work hard to give them what they have and that the value of money is important. So, how do you teach a child about money?

Tips on Teaching Children About Money - British notes and coins image

Flickr

Let Them Handle It

As your child gets old enough to do sums, let them handle money. Use the money to work on their mathematics skills at home. You’ll be surprised how a jar full of pennies can occupy a child. You may also want to let them calculate what they spend when you’re out shopping. For instance, if your child has birthday money to spend, ask them to stay within their limit by adding up the cost of their items. You can also ask them to pay at the till and wait for any change.

Give Them a Goal

If there’s a particular toy your child wants to buy, ask them to save for it themselves. As parents its an instinct to provide your child with their needs and wants, but it’s a valuable life lesson. Offer to give your child pocket money in exchange for good behaviour, completed homework and completed chores. Agree on an amount per week and let your child work out how long it will take him/her to save for what they want.

Explain Bills

Unless you explain it, your child may not realise there’s such a thing as an electricity bill. Children have a habit of leaving lights on, wasting water and leaving the TV on when no-ones watching it. If you explain that every time they put a light on it costs money, they may think twice about doing it. You can also save money by switching energy providers. You can compare energy providers at Selectra energy comparison specialists.

Tips on Teaching Children About Money - first car image

Flickr

Teenage Spending

As your children get older, their wants get more expensive. When your children turn sixteen, encourage them to get their first job and save for the things they want. That may be their first car which could be the most money they’ve ever spent. Teach them how to budget their money so they have money left over to save and put towards a reliable car. Here are some of the best new cars for first time drivers.

Be Open

Remember the old chestnut, ‘not while you’re living under my roof’? Past generations didn’t tend to explain why they had to say no. If you haven’t got the money to buy something your child wants, tell them why. Explain that your money has to go towards higher priorities. They won’t always understand but giving them a reason is better than telling them that you know best. They’ll thank you for being open and honest in the long run.