The old adage "prevention is the best medicine" is certainly applicable to personal finances. Preparing finances and planning ahead can keep a person off the online payday loan lender site, saving said individual the fees and interest associated with such loans. Starting a savings account, budgeting for the proverbial rainy day, and keeping tabs on one's credit are all important methods to maintain healthy finances, allowing for more financial independence and less payday loan reliance. Cultivating healthy spending and budgeting habits is a great way to personally prepare for unexpected emergencies, but how can one similarly prepare his/her children for future financial success?
Parents want their children to be successful; no parents want to see their children struggle financially or develop a payday loan habit. Like all things worth pursuing in life, financial success requires preparation and who better to prepare youths for the financial realities of the future than parents? Starting a child early on the path of financial security will help instill financial habits and values that can persist a lifetime. It may not always be an easy task, however.
While the actual concept of money is likely foreign to a child, teaching a youngster the basics of financial transactions can provide a strong basis for future financial success. With these fun, family activities, a child can learn about financial exchanges, even before he/she can understand what a dollar is really worth.
*Play a friendly game of poker. Break a dollar into pennies, nickels, and dimes and play poker with your kids. While it is a small amount to an adult, a dime is a big deal to a small child. Playing poker with your kids teaches them a couple of important financial rules: one, it teaches children how to count money; two, it teaches children not to go all in on an 'investment' that isn't a sure thing. Both lessons are crucial to financial success.
*Help your child create a Halloween candy budget. If your child has an abundance of Halloween candy, explain that he/she gets 7 pieces per week until it runs out. Then have the child figure out how many candies he/she should eat per day. Such a lesson in budgeting is invaluable to a child's future financial success
*Match your child's earnings for purchases. As a lesson on how retirement funds or high-yield saving's account work, tell your child that you will match whatever they put in on a purchase up to a certain dollar amount. Let's say your son wants a hundred dollar skateboard; tell him you will match up to fifty dollars. In doing so, you inspire your child to work for the money he/she needs while conducting a lesson on how some retirement and savings accounts work.
*Create a joint savings account for gifts. Kids get little bits of money from all sorts of places: grandparents, garage sales, lemonade stands, allowances, etc. Encouraging your child to put a little of that money aside for gifts come the holiday season will demonstrate the importance of planning ahead and anticipating expenses.
*Encourage your child to trade in old toys and donate to charity. This lesson will teach your child to barter rather than buy, and donate to those less fortunate-lessons which will save them money and make them kinder adults.