Financial Independence and Your Children – Part 2

May 9th, 2008 | Stacey | Financial Freedom, Financial Independence

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Teaching your children financial independence today will give them the skills they need for success tomorrow. Often we are raised to learn about a variety of other important issues but financial matters are frequently ignored. Our children grow up without fully understanding how to control their personal finances.

Our last entry discussed the importance of giving your children an allowance. It is easy to ask you for money but more difficult to figure out how much of their own money they need to get what they want. The next step to teaching your children financial freedom is to help them create their own budget.

If they have something they want to buy, give them a small notebook to tally their weekly allowance versus the cost of the item they want. When they spend a portion of their allowance on something else, have them enter it in the notebook. Your children will see how spending for a snack will take away from what they are saving for. They will also realize the value of saving when they see their notebook balance start to reach their goal.

This essential lesson will help your children understand how important it is to save for what they need or want. They will also have a feeling of accomplishment when they are finally able to save for what they wanted. A small victory such as this can fuel larger savings victories for your children in the future when they want to save for a car or house.

Tomorrow we will discuss more ways to teach your children valuable lessons about financial independence.