Leading By Example
Kids don’t learn budgeting and saving tips on their own. They rely on their parents to teach them good money management skills. The skills your child learns at a young age can stick with him throughout his adult years. This helps him make wiser decisions with regards to budgeting, saving and using credit. But unfortunately, some parents skip this important lesson, in which children learn through trial and error.
If you’re a mom and you want your kids to learn excellent money habits, here are four tips to help them:
1. Teach them how to save. Most kids will spend every dime of their allowance. Make saving a requirement in your home and have your child save a percentage of his allowance. If your child is older and has a part-time job, have him save at least 10% of his pay. He can put this money in a piggybank, or you can open a savings account for him.
2. Lead by example. Your example carries a lot of weight, and some children mimic the actions of their parents. With this said, practice good money habits yourself. Kids are observant, and if they see you spending money excessively, they’ll adopt this behavior. Live within your means, don’t make impulse purchases and save up for high priced items.
3. Talk about the dangers of credit cards. Your kid might view credit cards as their own personal magic cards. Make sure kids understand how credit cards work before they’re old enough to apply for one. Teach the importance of paying off balances in full each month and only charging what you can afford. Also, teach the connection between credit card debt and credit scores, and explain how credit determines whether they’re able to buy a car or house.
4. Use coupons. Coupons can save you money, and if you regularly use coupons, your kids will follow your example. Always check for coupons before shopping. For example, if you’re planning a shopping trip to Nordstrom, Nordstrom coupons can help you save on your purchase, in which you’re able to keep more cash in your pocket.
5. Shop smart online. Then again, maybe you love online shopping. Research Nordstrom promo codes online and you might find codes to take a percentage off your purchase, or codes for free shipping. Every little effort helps you save a buck.
Saving and budgeting are important to good money management. Teach your kids excellent personal finance tips and they may avoid money problems as adults.
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