Contrary to popular belief, there is no such thing as too early when it comes to teaching your child financial responsibility. The secret lies in the communication techniques that you use with your child – will he understand what you are saying or not?
Here are some of the ways in which you can begin teaching your child financial responsibility relatively early in the child's life.
– First of all, you can begin with methods that have stood strong against the test of time – games!
Board games such as Monopoly, now easily found in a digital format, have lasted so long because they are very effective in teaching children the basics of finance. A family can actually begin playing Monopoly for a child truly understands all of the nuances of the game. The child will respond to family time at first, naturally getting into the financial aspects of the gathering as he or she grows older.
– Second, there is no substitute to live action.
If you run your own business, bringing your child into your office is an indispensable way to begin his or her perspective on financial responsibility. Children soak up much more than you think they do – simply being around someone with an attitude of financial responsibility will rub off on them.
Children have a natural curiosity for things that seem exciting. If you have fun running your business, your child will naturally want to know about it. You can begin by having your child perform small, simple functions such as addition or subtraction on a calculator, giving the child more responsibility as he or she grows older
If you do not run your own business, you can still give your child access to financial responsibility by opening a lemonades stand or participating in the fund raising activities of social organizations such as the Boy Scouts or Girl Scouts. This age-old technique is a great way to introduce finance to your child in a fun and social way.
Third, give your child independent financial responsibility as he or she enters the teenage years.
When a child is old enough to work, he or she should be given the responsibility to earn money for luxury items rather than simply receiving them from mom or dad. Encourage the child to build a business rather than simply get a job, leveraging the time and money of his or her social circle in order to maximize the amount of money that can be made in a short period of time. Opening your child savings accounts with Clydesdale Bank is a great way to incorporate wealth building into his or her life.