A parent is an important figure in a child's mind— knowledgeable, powerful. If a child considers his or her parent to be incapable of making mistakes, then whatever the parent does will seem right, no matter what the reality. Children accept their parents’ word, and the parents’ word is the basis for what the rest of the world looks like to a child. The prime information that a child has to process life does not come from school or experience—it comes from the guidance their parents give them.
A child views outside activities through eyes that are biased and this bias is based on their home life—what is normal to them. Everyone has their normal. Home defines what is normal. Home life influences school and social life more than school or social life influences home life. If the foundation of the home is not solid, and the foundation of the child’s mind is not solid, they will have a difficult time building upon it. One constantly collapsing concern has to do with money. Today’s society struggles with economic pitfalls and financial handicaps. This is all the more reason for parents to take care and teach their children to be firmly grounded in this area. Not only for withstanding the rainy days, but also upholding others.
Mundane tasks such as taking your child on errands and having them watch you pay the monthly bills can enlighten them. Teach them how to seek out bargains when you shop. Show them the gratification they can get by saving up their allowance to buy something expensive instead of spending change on less significant things. Make sure you yourself make good decisions about how you use your money. Eventually, you may give your child more and more responsibilities in accordance to their maturity level.
Studies have revealed that the adolescent mind has not fully matured until the average age of twenty-five. This may contribute to why many young people shirk from fiscal obligation. It is common to find a thirty-year-old, fully grown, intellectually and physically adept individual, still living with his parents and unable to afford his own home. I'm sure his parents did all they possibly could to assure industrious progeny...talked with him, played with him, disciplined him; everything except teach him how to handle the budget. They controlled all his money business for him until he became an adult and then the job was given to him. Since he has little or no experience dealing with money, he has no idea what to do with it or how to save it. Parents with toddlers or children just beginning school may believe they have many years to go until their child reaches twenty or thirty. However, in order to prevent a thirty-year-old live in, it is advantageous for both the parent and child, to establish good habits at an early age.
Withholding money or requiring your child to work for his allowance might make you feel like a taskmaster. Yet, experience is a much harsher teacher, for she gives the test first and the lesson afterwards. Money mistakes cost. Ignorance is not bliss. There is only good to be found if you teach your child financial literacy. Knowing how to manage funds will give them a sense of independence and turn them into confident contributors to society.