Your kids were brought up in a different generation than you were. Their generation gets what they want instantly. They can get their ordered and delivered at a fast food restaurant in a few minutes or heated in a microwave even faster. Because of the internet they can get websites, apps and games loaded in seconds and any song they can possibly want is just a touch away. Talk about an instant gratification generation.
But when it comes to finances, nothing comes quickly. Having enough in your savings account only happens if you’re patient. Staying out of debt requires that you wait to buy what you want until you have enough to pay for it. These things might sound normal to you, but the new generation does not grasp these concepts that easily.
Just giving speeches to your kids about being financially responsible is not enough. You can expect those words to go in one ear and out the other. You will need a completely different approach altogether. Here are a few ways you can teach your kids about being financially responsible.
Lead By Example
Your kids will learn good financial habits if you are also responsible with your money. Getting collection calls and foreclosure notices does not set a good example for them.
Give Them Money
If you give your kids an allowance they can buy what they want. If they want something more expensive, they will have to save up for it. You can even give them bonuses if they reach certain savings goals (sort of like giving them interest).
Needs vs Wants
Teach your children the difference between a need and a want. Their backpack, books, food and clothes are all needs. But their toys are not. Tell them that you can only buy a “want” when you have extra money.