Do you have kids who spend money like crazy? It is not yet too late to teach them how to manage their money effectively regardless of their age. As a parent, you just have to be determined to teach them financial skills from which they can benefit for the rest of their adult lives. So, how do you start with this? Here are some ideas.
Teach your kids the value of earning their own money - When they get older, kids cannot spend their whole lives depending on you for their needs and financial problems. Is there a chore that they are capable of doing after school hours or during weekends? Encourage them to accomplish those chores regularly in exchange for a few dollars. You can also recommend them to your friends, co-workers or churchmates who might need babysitters or helpers for the day. They can gain confidence about earning money on their own through this.
Open a savings account for your kids - Open an account for each of your kids with the least amount needed. Teach them that their bank accounts are for saving money for future expenses. With the money that they're able to save, they can buy their first car or pay for their college tuition. Instruct them to deposit a part of their earnings in their bank accounts, but it will be better if you model it in front of them too.
Talk about money with them - Well, you don't have to let your kids know everything about your money or personal earnings and savings. Just give them an overview about your family's monthly expenses and budget. This will open their eyes to the reality that they can't buy just anything that they want and to prioritize the things they need to spend on.