Money Wisdom to Pass to Your Children
There are many tips and tricks regarding finances that you can pass on to your children. This can help them to make better choices regarding the money they spend, how they save, and even the decisions they make regarding planning for the future.
Early education regarding money can really help it become a normal part of your child’s life. In opposition to this, a lack of knowledge can lead to future debt, reliance on credit cards, and even potentially living payday to payday.
Paying into a Pension
In some professions, you may be offered the opportunity to pay into a workplace pension. In addition to this, or if you work for yourself, you may also be able to acquire a personal pension. While this money may not benefit you in the now, it can be of great use once you reach retirement age. Combining pensions can also allow you to have more money, especially if your workplace pension is less than desired.
While this may be many years off, knowing that you can afford to live comfortably as you get older can be very reassuring. This is a great thing to teach your children about from an early age. Even if your child wants to work in a self-employed trade, they can still set up their own pension to make life easier.
Saving Money Wisely
Putting money aside to save for long or short term goals can also be a good idea. Whether your child wants to own their own home one day, buy a car, or even go on holiday, this will involve an element of saving.
From a young age, you can teach your child to invest their money wisely, allowing for it to grow. This can also be a good way of storing your money and helps you to avoid the temptation to spend it, especially if you use an account which does not include a debit card. These will require you to physically go into the bank or building society to deposit or withdraw money, which can help to avoid spending the money.
When you have money, it can be incredibly tempting to spend it on luxury items and other non-essentials. In the moment, this may make you feel great, but there is also the chance that, later on, you will feel a form of buyer’s remorse.
To combat this, it is important to teach your child to wait before making certain purchases. Whether they want to order the latest gadgets, buy some new clothes, or splash out on the latest smartphone, waiting a few days can be beneficial. During this time, they can continue to consider whether they really do want the item, as well as if it is actually affordable. If the money is not within their budget, or they find that they are no longer as excited about the purchase as when they first considered it, then they have saved themselves this regret.
Learning to use and save money wisely now can help prevent problems with debt in the future. By ingraining this wisdom, but still allowing them some freedom and independence, you can help them toe the line between responsibility and enjoyment.