For countless families, the thought of finances and budgeting can be daunting. Many people would just prefer to not even know how their money is spent for fear of realizing that they might be worse off than they even assumed. More so than that, the thought of teaching their kids to understand budgeting only builds on that stress!
Establishing a household budget and learning to manage money is much more likely to reduce your stress than to increase it. The unknown is the most intimidating factor of all. It is both liberating and encouraging to know that you are in control of your money and you are the one that determines how it is spent.
Teaching your children how to manage money is not only beneficial for them, but also helps to alleviate stress in your own life. Helping children to understand finances sets them up for both present and future success, while also steering them towards financial independence.
Dennis Miller, the Senior Editor of Miller’s Money Forever, outlines five strategic practices to help Fathers teach their children financial wisdom:
Set Expectations Early “When baby boomers were growing up, they were expected to go to college and then move out on their own. Mom and dad made that crystal clear by about fifth grade and helped their kids prepare.”
Make Independence the Goal “Parents need to make independence the more attractive choice.”
Teach Good Financial Habits Early “It’s never too early to start showing children how to earn their own way. At what point do you stop handing out no-strings attached allowances and assign chores to make them earn that money?”
Saving is a Must “When your children earn money from chores or little jobs and when they receive money as gifts, help them put a certain percentage in savings.”
Be a Financial Mentor “She wasn’t calling to ask for money, she was asking for advice. I thought later about what a disservice I would have done to her marriage if I had helped financially.”
To read the entire post by Dennis Miller, click here: 5 Financial Keys to Fatherhood, Not Friendship