In a materialistic world, people always become carried away. Consumerism has the potential to destroy lives as people spend irresponsibly. One way to ensure your children learn financial responsibility is to start at a very early age.
Here are some tips and strategies to help you guide your children through the jungle of consumerism.
1) When your children want to buy something, e.g. a toy:
- Give your children a little money, ask them to find the best deal and allow them to keep the change.
- If you can find a better deal than them, have them pay you the difference.
- This will encourage them to shop around for good deals.
2) Open a college/university fund for them:
- Show them how much their money has grown and what they should expect at the fund’s maturity.
- Generally speaking, education savings plans, such as RESPs grow faster than other savings plans and the government makes partial contributions to it. Allow your children to see the different ways their money can grow.
- Have them contribute to their education savings account.
3) Have your children earn their allowance by chores around the home:
- This easily teaches them the value of a dollar.
- It is easier for them to abuse your hard earned money than their own.
4) Teach your children entrepreneurialism:
- Summer lemonade sales and winter hot chocolate sales are a great start.
- This will teach them self-sufficiency.
- They will learn to start and manage small businesses.
5) Fine them:
- For chores that are completed late, have them pay a small fine.
- This is a taste of the real world in a controlled environment.
If you have any more tips and strategies, please share.
Lets create a world of responsible adults.