Your kids are spending money, but how much do they know about managing and budgeting it. It might not seem a big deal because they are not purchasing much, but financial literacy is essential for children to define their future spending habits. It helps them know how to be responsible when spending, and how money works. Do you let them spend all their allowance? It is essential to monitor how they are spending the money, and develop methods to show them how to manage their money practically.
A Debit card comes in handy. It will not only help them develop sound financial skills at an early age, but it will also help you know your child’s spending habits. Different debit cards have different features and packages. Most debit cards allow you to control your kid’s spending. Debit cards for kids are an excellent monitoring tool to enable you to determine your child’s attitude towards money. It is important to emphasize to your children that they are using real money when they are using a debit card; it is also necessary to emphasize that they can use cash when buying rather than swiping cards all the time.
Now that you have determined your child’s attitude towards money, how do you go about it? They will not appreciate the lecture as they might feel that you are imposing or are too strict, yet you will need to talk about money. Do emphasize on what they are doing right and reward them. As for their spending probably on things they do not need, talk about opportunity cost. Teach them that they can do without some stuff but should prioritize buying things that they actually need. Again this might not be appreciated, but if they really want to get something, get them to work for it. That is how they will get to appreciate the value of money.
If they are needing too much money, they could be feeding a habit like a drug addiction. It is not just about making good money decisions, but by monitoring, you might also know what is going on with them and if they might need your help. You might also identify their interests and guide them on career decisions.
As they start learning how to make purchase decisions, they might want to buy products from a particular brand that might be more expensive yet they might be getting the same value for their money. They should know the importance of spending within their means and work harder to buy what they want.
You should also impress on your children that money is a good thing; it provides security and opportunity, yet there are obligations. So they should spend their money wisely as no one will pay their bills and taxes. Those savings are for a rainy day as they can’t predict; tomorrow has its challenges.
There, get intentional about teaching kids about money. They should realize that money is not as tangible, and these money management skills will help them in making sound financial decisions.