Preparing My Children for Financial Independence
One of the main goals for parenting is to train our children to be a responsible adult, which includes their finances. Training our children requires that we put a plan into place early on to prepare them to handle money wisely. If we don’t and we drop them off on a college campus or watch them go out the door as adults we have possibly set them up for failure. To come up with a plan you can start at the end, or goal, and work backwards. As your child leaves your home the goal is to have them fully prepared to use the tools that come with money, such as a debit card, credit card and budget.
We have talked over the past week how to use allowance with your small children to teach saving and then creating a budget with your older children. As teens approach the end of high school there must be a plan in place to help train them to use a debit card, bank account and credit card responsibly. This will take a lot of trust and communication on the part of the parent. It is necessary to help your child be prepared to handle the financial temptations of the adult world and be strong enough to say no.
Listen to today’s podcast for more insight on training your child how to be financially independent.