Kids and Cash: Teaching Your Children Financial Responsibility

Most times, kids and cash do not go together, because kids do not generally get the concept of money. However, with just a few ideas and suggestions, it will be plausible to trust children with money. But, the idea is not to just trust them with money, but for them to learn exactly what responsibility is and how to act upon it. 

Go The Extra Mile
Some parents do not trust their children with any money, and this is not good, because once they get money they tend to blow it. Rather, give a child a daily or weekly allowance, and see what they do with it. Observe what they buy, what they waste it on, and keep track of what they have at the end of the week.
A good system that has worked is a ‘budget watch.’ A parent gives a child twenty-five dollars Monday morning, and by Friday they must have ten left. This great because it shows the child not to waste their money, but to only spend it on necessities. This is also great because if the ten dollars is not saved, twenty-five dollars will not be given again the following Monday.
Old Fashioned Bank Account
According to D. Thode & Associates Inc, a bank account is really where trust comes in the midst. At this stage, children are given a debit card that they can use all over the word, and they may even have their work checks directly deposited into the account. The good news, parents still have the last say, and they can take away the child’s debit card if they are not happy with the way the child is spending the money.
A great route to take in this situation is to have the child/children bank in the same bank as the parents. When this happens, parents have the right to receive their own bank statements as well as their child’s. The bank may even have some kind of family account, which will come with even more security.
These are the best ways to teach children responsibility when it comes to money. A lot of parents have used these methods; not only have they worked, but these methods have made children learn responsibility and learn it in a hurry.
Don’t wait until your child has a credit score of three-hundred, but help then learn to be responsible today, and this will save their lives tomorrow and forever more.