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Are you teaching your children financial responsibility?




As parents, we feel responsible for teaching our children the things they ought to know. We want to be sure that our children are fully equipped to live life even when we are not around.

One area where we need to consistently tutor our children is in the area of finances. The world is changing rapidly, and raising financially smart children might be a challenge if we don't start early. Teaching our children financial responsibility helps them understand that everyone has duties and responsibilities.

Some ways we can teach our children financial responsibility include:

  • Allow them make some money decisions: Letting your children make money decisions early helps them practice their money management skills. Without the opportunity to practice making wise financial decisions early, children won't learn these valuable lessons until much later in life, when they are likely dealing with other significant issues. We should allow our children to make little mistakes and grow from these mistakes while we are around to guide them.

  • Teach them to budget: This can be done by giving them allowances: Giving children allowances can be done in different ways. You can tie allowances to house chores, or you can just give them allowances every week. You should require that your children perform tasks without expecting payment, this will teach them not to be entitled. You can however give allowances to your children for any jobs done above and beyond the required family responsibilities. Spread out the timing of the allowances; this will help your children manage money better.

  • Teaching them to save: You should encourage your children to save. Help your children set goals for savings. Teaching your children to save also helps them learn them delayed gratification. Every time your child gets any money, they should save a portion of it first (at least one-third). Remember the words of Dave Ramsey:“Here’s the point of saving, even if it’s only a dollar.  You want to make sure you teach them a pattern of habits that will help them win in life.

  • Teach them to give: You can set rules that a portion of their allowances should be given out; to the needy, to the less-priviledged.  You can earmark a portion of their allowances to causes they might also be interested in.

In conclusion; Remember that we all want the best for our children, rather than showering our children with every material thing, a better strategy may be to teach them to be financially responsible by teaching them the power of delayed gratification, saving and giving , as well as investing for their later years.


Also remember to lead by example. Children learn best by example..........

I hope this has been of great use to you. Till next time...............

Peace and Love,

The Money Maestro

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