RAISING FINANCIALLY RESPONSIBLE CHILDREN

 THE IMPORTANCE OF FINANCIAL DISCIPLINE IN CHILDREN

"I Believe That Through Knowledge And Discipline, Financial Peace Is Possible For All Of Us" - Dave Ramsey

INTRODUCTION:

Children are the future generation of the world. They are the people who will create the next generation. They will create the nation and society. By taking care of the children, we are making sure that the future of the nation is in safe hands. One of the important things that children should be made to learn is Financial Discipline. It is the ability to control the reckless spending of money. It is also the ability to earn money and save it for the future. Financial Discipline is important to learn from the early stage of our lives. It will help us in the future to manage the money that we make. We should learn how to save money and invest it in the future.

WHAT IS FINANCIAL DISCIPLINE?

Financial discipline is the ability to control one's spending and saving habits, and it is an important skill for anyone to have. It is the ability to resist spending money in the present for the sake of saving it for the future. It is a skill that will help us to be more financially independent as we grow up and also help us to be more responsible with our money.

THE IMPORTANCE OF FINANCIAL DISCIPLINE:

Financial discipline is an important part of growing up. It helps you manage your money, which means you will be able to deal with financial problems better and not let your finances dictate how you live your life.

FINANCIAL DISCIPLINE AS A LIFE SKILL IN CHILDREN:

Financial discipline is an essential life skill that helps children manage their money wisely and achieve their financial goals in the future. It is therefore important to teach them the value of money and how to manage it. Financial literacy is a skill that is vital to youth success. Financial literacy is the ability to understand what to do with money, how money works, and other financial institutions. It is about understanding your personal finances, the value of money, and the role of money in society. This skill is important for children and young people to understand and develop in order to make good choices about their personal finances and, as a result, secure their financial futures.

Parent's Role:

Many parents try to teach their teens about money early in order to avoid financial problems later in life, but teaching teens about money can be tricky. Every teenager should be taught the basics. Parents should teach their wards how to save money, save for something important, and pay back the money they owe. This way, they’ll have a clear understanding of money. Teenagers should also be taught how to handle debt. They should learn how to pay off debt, not just accumulate it. They should be taught about financial instruments like the stock market, mutual funds, and banking accounts and how to evaluate investments. Children should be made to learn how to handle a budget. They should know how to set priorities and save money. They should also learn how to use the money to buy things they need and want (not just on instinct).

Start it early:

It is never too early to start teaching your children about managing money, financial responsibility, and financial discipline. It is never too early to start teaching your children how to make good financial decisions early in life. The earlier you start teaching your children about money, the better the chances are that they will understand and practice good financial discipline. Here are some tips to help your children develop financial discipline early in life.

ADVICE FOR PARENTS TO IMPART FINANCIAL DISCIPLINE TO CHILDREN AND TEENS:

1) Start Young: The earlier children start learning about money management, the easier it will be for them to learn later. By teaching kids how to manage their own finances at a young age, they’ll have a head start on building good financial habits. 2) Teach Them To Save: Teach your child to save money by giving them a piggy bank or allowance jar where they can put any spare change they earn. Encourage them to save even small amounts regularly. 3) Make Saving A Pleasurable Experience: Children love games and activities that teach them about money. Try playing "I Spy Money" or having them count out coins while watching television. 4) Give Them Control: Give your teenager a budget and let them decide what they want to spend their money on. If they choose something that costs more than expected, make sure they understand why it was necessary. 5) Keep Track: Keep a record of everything your teen spends money on. You may find that they aren't spending enough on some things or that they're overspending on others. Use these insights to help guide future purchases. 6) Be Honest: If your teen asks for a raise, tell them that you need to know if they've been spending their money wisely. Let them know that you'll give them a raise only if they prove themselves worthy. 7) Have A Plan: Have a written budget and stick to it. If your teen doesn't follow your rules, don't punish them; instead, explain why you set those limits in the first place. 8) Teach Them About Credit Cards: Credit cards are great tools for teenagers to learn about budgeting and spending habits. However, they should only be used responsibly. Teenagers need to know what types of charges are allowed on their cards and how much interest they will pay if they carry a balance. If they do not use their card wisely, they may find themselves paying higher rates and fees. 9) Get Them Involved: Teenagers who get involved in community service activities are more likely to develop a sense of responsibility and gain valuable skills. Volunteering teaches teens about giving back to the community and helps them build confidence and self-esteem. 10) Make Them Money-Smart: Money management is an art that takes time to master. Children who are financially literate are able to set goals and stick to them. They also know how to handle unexpected expenses and emergencies. 11) Make Them Choose Wisely: When making purchases, children should always consider whether or not they really need something. Buying things impulsively is often a bad idea. Instead, they should focus on buying items that they truly want. 12) Teach Them To Save For Future Goals: Saving money is a habit that can be developed over time. Children who save regularly are less likely to go into debt, in the future. They also have a greater chance of achieving long-term goals.

CONCLUSION:

It's an irony that schools do not impart the art of Financial Discipline. However, parents must take a lead in inculcating financial literacy in their wards The above points will be helpful in imparting financial literacy to your children and will make them more responsible people. Financial Discipline should be treated as a way of life and, more importantly, as a habit.