Money is always a sensitive topic and taboo. It is also an important lesson to teach your children about manage money. So if you are entangled in debt, you need to tell the children you are on the real situation about your financial condition.
There is nothing wrong with being honest with your children about financial matters. They need to learn early on how important it is to manage money well. So that they grow to be accustomed to getting what they need only. You need to teach them the right values that will make them realize that everything they do – even a simple purchase, must be made fully accountable.
It is a known fact that the financial industry is always changing over the years. There are more portals that we can buy something and to spend money is now more convenient. Convenience that makes it all the easier to spend and thus more responsible in the way we use our finances.
While an early age, to teach children valuable lessons about money management is a must. Even if you are drowning in debt, there are some lessons to be learned by adults and children alike.
By being honest about your debt, how you got into debt and how you plan to get out of it, your children will be made aware of the consequences that any expenditure has. That’s lesson number one. Tell them the story about how you got into this financial crisis in the first place. Make sure you emphasize points as the mistakes you made.
Explaining them of the obligation to pay off your debt. More importantly, tell them about the role that they have to help the family out of debt. Children who are older may not be enthusiastic about it. Just be patient and allow them to adjust the conditions. They will live with a new lifestyle after all met.
While we do not want our children to work at an early age, you might want to teach them the basics of it. For example, if they want something, they need to learn how to get it. That could mean helping at home and get points for it. To help raise funds, you can ask them for help in collecting old stuff and sell it. They can keep the profits from what they sell.
Encourage your child (at least they took quite a long time) to reach out to neighbors and ask for a job. Cutting grass, watering the garden, painting fences, or walking pets are several things they can do. Teach them to spend what they have done wisely. Inculcate the habit of saving as well. These are just a few things you can give to your children.
Even if you make some mistakes in your finances, show your children how you intend to get out of debt will show them a lot about financial management. More than living the right way, rising from their mistakes will show much more than what you can tell them about the proper handling of money.