Making Young Generation financially responsible

We all want in our heart that our children should become responsible adults, without facing any hardships due to their ill-thought out actions that results in regret and remorse. So how should we make them more sensible and literate about money and make them mature enough to handle it more sensibly. In this post we will discuss few important points which can be taken up during the teenager time of our children and help them to become a responsible person in future.

1. The kids grew in the family so the first lesson towards money is also learnt in the family environment. If we deliberate and discuss the merits of every financial decision with other family members, our kids will also pickup this habit. We should make them understand that money is a limited source and we should be avoiding impulsive buying or swiping credit cards carelessly. Be careful and clear why we are buying anything.  For kids we may fix a monthly allowance and stick with it to make them understand the meaning of budget and spending within their means.

2. As money is a limited source so we should also plan it properly. Making budget a joint affair with all family members will make them understand the value of money and the limitations we have towards spending it. During this exercise we will make them aware the priorities of various expenses and how should we allocate funds towards them. They will understand the importance and difference between various expenses i.e. food, basic amenities over discretionary/leisure items as costly electronic gadgets.

3. Let the kids also maintain their own income and expense records and we may check it once in a while. This will help them to review their past expenses and correct the unnecessary things on regular basis. Nowadays many online apps are available which can be very handy for this.

4. Encourage our kids to do some works (howsoever small or menial it is) if they need more money for buying luxury items so as to make them understand the importance of work and value of money.

5. Make them value others money also. Encourage them to pool money for joint expenses like eating out with friends so that everyone contributes and values others money. This will help them to take joint decisions in equitable manner which is good for everyone and does not becomes a burden for few.

6. We should guide them about few basics of banks and finances. Open their own bank accounts and let them learn basics of banking like doing banking transactions, using ATM/Debit cards or online transaction with proper safety. This will make them more confident and also make them understand how different system works.

These small habits will make them self-independent and help them to become a responsible person in future while they grow older and have their own families.