Educating your kids about money and finance can help in increasing their knowledge about finance and thus train them in becoming responsible adults. A number of parents are hesitant to discuss financial matters with their children because they think that their children are not yet ready or interested in such matters.
But when children are smarter about money, they are more likely to make more intelligent financial decisions when they grow older. And this is the reason why HCR Wealth Advisors, a registered investment advisory firm, endorses the early financial training of kids. Below are some tips given by HCR Wealth Advisors on how children can learn about money and finance.
- Provide an Allowance for Accomplishing Chores
Kids must learn that nothing is really free, especially money. Giving them an allowance will emphasize the notion that money must be earned and not just given or asked for. So, if your child asks for more money, then offer more chores. Tell them that the more chores they do the more they will earn.
- Teach Them How to Budget
After educating your children about the fact that they can earn income by doing chores at home, help them make a budget. Instruct them to write down their income and the things they need on a paper. The list should have income on the left side of the paper while the right side contains what they expect to spend it on. By accomplishing this step, you are helping the child understand how budgeting is done and see whether he or she can afford to buy the things he or she needs or wants.
- Open a Savings Account for Your Child
Starting a savings account with your kid is another fantastic way to educate him or her on how to save earnings with a bank. Understanding how to open a bank account and how to utilize debit cards are valuable lessons that your children should learn. Therefore, if you assist them in setting up their savings accounts they can become more dependable financially.
HCR Wealth Advisors on giving personalized financial solutions: http://analystoffinance.com/2018/04/hcr-wealth-advisors-making-volatility-friend-personalized-financial-solutions/
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