The Millionaire Mind by Thomas Stanley is a book that explains in detail how continued financial support creates a negative impact on the young offspring. Finance experts from Wilkins Finance agree that wanting the best for your child does not necessarily mean allowing them to have everything they want and desire. You have to take charge as a parent and show your children that you know better.
How to keep them on the right track
1.Create an allowance policy
While many parents may argue the real essence of allowance, it is one way to teach your children the cycle of money management. Once you have decided on an allowance policy, stick to it and make it consistent. Your children will have a number of lessons to learn from it. One, they will learn to prioritize their needs, given that they will always be anticipating for a certain amount of money after a certain period of time. They will even grow smart enough to have a plan or budget on what how to use the allowance each time.
2.Encourage them to save
Sometimes your child will ask you for something that their allowance might not really cover. So what do you do? Do you just give them? Well, you could, but sometimes make them sweat for it. Not sweating in the literal sense but by saving up for what they want. Let us assume your son has asked for a bicycle for the summer season; make him start saving early for it. The allowance you give him might not allow for significant savings so you can top it up for him. But ultimately, he will have learned a lesson, and he will even value that bicycle more than he would have if you had bought him with your own money.
3. Teach them charity
As you teach your children how to be financially stable, also teach them about the power of generosity. They need to learn compassion and how to give back to the society. Imagine raising your child the right way for so many years only to be disappointed and frustrated in future because they cannot help you. Not that they lack the finances; but because you failed to teach them that one virtue of kindness.
This article has been republished with permission from Modest Money.