Most people want to help their children excel in life – but for many of us, it’s tough to teach our children about managing money when we’re struggling ourselves.

Here are some key lessons to instill in your young ones to make sure they get started on the right financial foot:

1. Delaying Gratification: Help your children learn to resist impulse buying by giving them a regular allowance. If they spend all their money and want something else, don’t help them out. They’ll learn to save after not being able to go to the movies with everyone else.
2. Making Tradeoffs: For kids, this lesson usually takes the form of trading satisfaction now (from buying sweets) for satisfaction later (from buying a new pair of sneakers). Limiting your kids’ allowance is a great way to help them learn to save for things they really want.
3. Analyzing Choices: Encourage your children to hang onto their receipts so they can look at them at the end of the month. They’ll be able to see how quickly little purchases add up – and how fleeting some pleasures are.
4. Balancing the Checkbook: This is especially important for older teens, who are likely going to receive credit and debit card offers soon. Let them watch and help you balance your checkbook so they aren’t intimidated when their time comes.
5. Budgeting: Elicit your children’s input on grocery, back-to-school and party lists. Set a monetary limit and help them figure out how much things might cost, what items are necessities and what items are extras.
6. Borrowing Money: If your children really want an advance on allowance, consider giving it to them – with interest. Help your kids calculate how much they’ll end up paying back, and whether or not the immediate happiness is worth the long-term cost.

Don’t Make Money a Taboo Topic

Many parents shy away from discussing money with their children, but open, honest conversation can help your children immensely.

You don’t want to let your kids in on every detail of your finances, but letting them contribute to the family’s budget decisions helps them develop the problem-solving skills they’ll need when they begin earning money of their own.

And, if your children ask any questions you can’t answer, be honest. Tell them you don’t know, and help them find the answers from the resources available.

Want to learn more about teaching kids about money? Kids and Money.

Are you struggling and thinking about filing bankruptcy? Check out www.TotalBankruptcy.com

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