Everyone makes mistakes in life but when you make the mistake into falling into debt, you don’t want the same to happen to your children, if you have any.  Even if you’re planning on having kids in the near future, it’s important that you know how to teach them the importance of money as they grow older.  Debt no only causes stress in life, it can cause marital issues, a loss of a home, and so much more.

Start teaching your kids now- It’s never too early to teach your kids the importance about money.  You don’t need to tell them about it daily but it get across their mind that money doesn’t come free and you have to work for it.  Explain to your kids on how you can get your money and what you do with it to spend wisely.

NEVER spoil your kids – Everything that falls into your child’s lap should not just fall there but instead, your child should work for it.  Step back for a second and think of all of your dead beat friends that have lived at home until they were 28.  Did they get everything handed to them?  Probably.  With your kid, you’ll want them to do things to earn that dollar.

Allowances are key- As I mentioned in the previous post, you should make your child earn his/her money.  This is when you set an effective allowance and treat it like a job.  Make them take out the trash, clean the kitchens, vacuum.  Don’t just give them jobs for the sake of having a job, give them something that needs to be done around the house.  If they don’t want to do it, they don’t get paid, it’s that easy!  Remember, you don’t want your child to be your best friend.  You have to teach them discipline sooner or later.

Teach them about banking – When you children start making money, start showing them the effects of saving their money.  Open up a savings account for them and encourage them to save that money.  Tell them in the future that they will be able to buy a car, computer, etc with all the money they have saved up.  Teach them not to live paycheck to paycheck!

Show them investing tools- Just like learning about money, it’s never to early to teach your child about investing and retirement.  The earlier they learn and implement things, the quicker they can retire.  Just show them the importance of retirement and how great it would be if you didn’t have to work after the age of 55 instead of say, the age of 61. 

Children usually model after your behaviors.  If you’re careless with your money and you spend it left and right, you may want to change your ways if you hate what situation you’re in now.  Don’t go overboard when teaching your kids but rather teach them a few times a month until they get the clue.  Hopefully, down the road they will be thanking you when they are living a debt free life.