Allowing My Children to Experience Money Management
The third step in training your children for financial responsibility is experience. They have to be allowed to practice as children with small amounts of money so that they can learn valuable lessons about money early. Their first experiences in spending and saving should not be after they have gotten their first jobs. If this is the case we have not set them up for success.
As parents this is one of the areas that we can step back and allow them to practice small financial decisions with their allowance. We must be prepared, through this time of practice, for our own emotions. When our child has spent all of their money and is looking to us to purchase something for them, we cannot give in to guilt. We must allow them to make the choice and possibly make a poor choice in this area. They will not learn the lesson, however, if we step in and rescue them. There may be some painful moments for our child as they learn the value of saving and not spending all of their money immediately. We have to let them learn these lessons as children and they must learn them before they are on their own making major financial decisions that can affect their future!!
Listen to today’s podcast for more insight on training your child for financial responsibility through experience.