Author: aditi

Vast majority of parents say they are good financial role models for their children but they may be kidding themselves. A new survey suggests that parents fail to pass along even basic financial skills to their teens, and that they are sloppy themselves in the way they manage money. And remember: Teens see everything!
There’s a real disconnect between what parents think is important for kids to learn and what they are actually teaching them. More parents teach their kids how to shop rather than how to save. Only one family in five involves their teenagers in family budget matters.

Here are some ways to be good role models for your kids and also to teach them the basics of money.

• Give them some
  An allowance is crucial to a child’s ability to learn to manage money. So is the leeway to make mistakes. Encourage them to spend some of their money on fun things, to save some for their own longer-term goals and donate some. When they spend it all on candy the first day, don’t bail them out for weekend movies.


• Match savings
  
  Offer to match the amount your kids set aside for the long term.


• Encourage them to play online games
  
  There are a variety of kid-focused calculators and money games on line.


• Make them work for it
  
  Teens should have jobs. Kids who work have more pride in them and much more interest in learning to manage their money correctly. They’re better savers, too.


• Model good behavior
  
  If your own credit cards are maxed out, that’s what your kids will think is normal. If you’re fixing the situation through belt tightening and extra monthly payments, do talk about that at the table. You don’t have to let your kids see your pay-cheque or know the intimate details of the family’s finances, but they should see you saving and investing, and talking about money in a way that is calm, healthy, and not fraught with emotion.


• Talk about family choices
  
  Instead of just saying ‘yes’ or ‘no’ at the supermarket or toy store, say things like ‘if we buy this today, we won’t have enough money for pizza night on Friday’ Have a dinner conversation about how the family’s ‘fun budget’ might cover a flat screen TV or a week at the beach, but not both.


• Do a few formal lessons
  
  They don’t even have to be fun. Sit down at the table and show your older child or teen how to balance a cheque-book, how to write a budget and the mechanics of paying bills on time. Teach them how to use their check register whenever they use their ATM/debit card.


• Increase their responsibilities as they get older
  
  Give a teen his own clothing budget. Make a driver buy her own gas. Get a credit card for high-school seniors or college students as soon as they are old enough to qualify, but make sure the credit limit is low. Even if you’re supporting them at school, make them pay the bills.


• Don’t worry about it all sinking in at once
  
  Some kids are just more money-oriented than others, just like adults. The better the financial behavior they see, and the more formal and informal lessons you’ve been able to deliver, the more financially stable they’ll be in the long run. Even if they have to eat a few late fees and overdraft charges to get there.

About the Author:

hi, My nane is aditi and i am woring as a content writer in data comp web technologies....i am fond of reading books and like to read and write good articles....i want to be a part of articlesbase.

Article Source: ArticlesBase.com - Teaching Your Kids About Money

Author: Stephen Sikes

When you think of the idea of your child having credit cards, it may scare you more than anything else. You think about all the stores of kids getting cards and getting into deep debt and think that last thing you need is to have to bail your child out of debt while also dealing with your own financial life.

This may be exactly the reason you should consider getting your child a credit card now.

Credit cards are not bad. It’s how people use them. Unfortunately, many people don’t have any training on how to properly use credit cards and end up charging and charging until they have gotten themselves into a world of debt.

As a parent, you can stop this from happening to your child.

Many parents don’t let their child get their first credit card until they are going to college. That means the teen is learning how to use a credit card on their own. This is a recipe for disaster. Instead, it would be better if you were to get them a credit card while they are still at home and teach them how to use it responsibly, and be right there to make sure they are.

Many people are starting even younger with kids and credit cards, as young as 10 years old. In these cases, they are starting their children with pre-paid credit cards. Instead of giving the kids cash allowances, they give them a pre-paid credit card that is charged weekly with the child's allowance.

Then use that card to teach the child responsible use of the card so they never try to charge more than they have on the card.

When this type of message is started at a young age, children get into the habit of using credit cards responsibly.

As your child gets older you can move them into real credit cards, with low limits. A credit card with a balance of $200 or less could let them understand how to charge, keep within their limits and learn how to make sure they have enough to pay the balance at the end of the month.

It is important that you hold strong if your child screws up. Most kids will make at least one mistake of charging more than they make back in a month. Don’t bail them out. Tell your child they will lose out on whatever they had planned on doing until they can earn enough to pay down their debt and stick to it. After a couple of tough lessons, they will learn how to keep their finances balanced. This is a message that will help them out for years to come.

About the Author:

Stephen Sikes is the owner of the credit card comparison site
www.CreditCardWave.com
Visit the site to read articles and reviews on the best ways to utilize credit cards.
You can compare and apply online for top personal and business credit cards.

Article Source: ArticlesBase.com - Kids and Credit Cards – it Can Work