It’s always a worry that your child will be financially irresponsible and they will squander any money they get and you will be constantly bailing them out of trouble, but there are ways you can teach your child to be responsible with money and appreciate its value.
Start teaching your child about money as early as possible. Teach them that money does not grow on trees and that you do not have an endless supply of cash.
If they ask for something that you can’t afford then simply tell them that you do not have enough money to buy it. They may not be happy with this but they need to learn that they can’t have every single thing that they want.
Make them responsible for their own money. They can spend it on whatever they like, but once it has gone, that’s it; don’t bail them out and buy them whatever they need or they will think that you will always do this. If they waste their money then that is their responsibility.
People learn by making mistakes with money and children are no different. Wasting their money and being left with none will teach them a valuable lesson and it will be likely to make them much more responsible in the future!
If they want something, get them to save up for it. Saving for something makes you appreciate it all the more because you had to work hard and sacrifice to get it. If you are feeling generous, then you could reward them by putting in a little extra if they did well.
But if they fail in their savings goal then do not help them out. they need to learn that saving for something is not easy and you have to cut back on luxuries. Make them earn their pocket money once they are old enough to do chores.
Some people say you should not pay kids for doing chores because they should do them for free, but when they are younger and unable to get a weekend job, paying them a little bit to do chores will not hurt. If they do not do the chores then they should not get the money.
Teaching financial responsibility to your children should be a helpful way to give them a clear understanding of the value of money.
A child that does not understand that money is limited is unlikely to be a particularly well rounded or responsible adult.