How to Raise Financially Responsible Children

Most families don't discuss money management and finances openly, which might explain why kids today grow up without knowing anything about balancing a checkbook, saving for the future or managing a personal or household budget. These steps can help you raise financially savvy children.

Instructions

Difficulty: Easy

1. 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.
2. 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.
3. 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 room. This can help the idea that work produces results.