Prepare your children for financial freedom. Our children are our future and refusing to teach them the core secrets of financial freedom could be sinistrous.
They need to know what money is and how best to manage it so as to make them succeed at whatever they choose to do in life.
This article contains a unique synthesis of ideas you can use to prepare your children for financial freedom.
If we fail to teach our children financial skills, they may not know how to grow rich and become successful in life. Financial skills are important to navigate life and they are really not taught in schools.
It, therefore, becomes our duty to practically and constantly prepare our children for a debt-free future.
Here Are The 4 Ways To Prepare Your Children For Financial Freedom.
1. Learn To Give Them A Modest Allowance
One of the effective ways to teach your children the value of money is to learn to give them a reasonable and modest allowance either on a weekly or monthly basis.
Your children should not have direct access to your wallet. Opening your wallet for them may make them never appreciate what it means to budget or save.
Since they know that the given allowance is what they have to spend for the whole week or month, they will learn how to budget and save and not be over-extravagant.
The essence of this is to enable your children a live a moderate and frugal life. Not only that, budgeting and saving will make them know when and what to spend money on. It will give them the clue on the difference between an asset and a liability.
2. Let Them Save And Buy Something Themselves
It is our duty to buy our children some toys and gifts as they grow. This will make them happy and also have some genuine health benefits.
However, there are things along the way that you and your children may disagree about their appeal and you make them buy those things themselves. This is a valuable way to teach your children about financial management.
Encourage them to save their allowance and work for the money to buy what they want.
You should be reminded that the goal is to build them for financial freedom and not that you intend to make them suffer.
In this sense, don’t saddle them with the responsibility of buying everything themselves. There are only a few things (such as video games, phone gadgets, bags or boxes etc.) that you should allow them to buy themselves.
3. Encourage Them To Make Donations To Charity
You might be wondering how donations to charity may help someone to attain financial freedom.
“You make more money if you’re generous.”Robert T. Kiyosaki
Practically, donations expose us to genuine poverty and help us see how a small amount of our money can make a difference for those who are struggling.
If you encourage your children to make donations to charity, it will help them not only to reduce their risk of being imperious but also adopt a kind and generous attitude, which is the greatest money-making secret in history.
4. Help Them Open A Bank Account
For your children to understand how the financial system works better, you need to help them open a bank account.
You are advised not to do this before they are eight years old.
This is because they wouldn’t be able to understand the concept of a bank holding their money until they are beyond that age.
As soon as they are eight years old, introduce them to the banking system. Make sure they learn how to make deposit and withdrawals all on their own. This will enable them to understand the concept of saving and make them good at money management.
Final Words: 4 Ways To Prepare Your Children For A Financial Freedom
Preparing your children for a better future is, by far, not complete until you meticulously prepare them with the mental and physical skills that’ll help them pilot their financial issues.
Be their parent. Be their guardian, and be their financial tutor!
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Ahmed Yusuf Babatunde
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