Teaching yourself to be frugal and conservative with your funds, saving well, and spending when you need to, are great traits to have in getting closer to becoming financially free. However, how do you take these skills that you’ve learned with regard to money, and pass them onto your children so that they have the best chance of being financially stable in the years to come?
Thinking of ways to help set up your children financially for the future, and get them into a savings mind-set that will no doubt help them in later life? To help get the ball rolling, here are a few different things that you might want to try.
Starting from a young age
A great way to start with your children and money is to involve it in their learning process as soon as you can. There are plenty of toys, games, and educational tools that you could choose to utilise, and you could also give your child an allowance/a regular amount of pocket money, giving them autonomy and choice of what they want to spend it on. With this technique, not only will they be grateful, but it will also indirectly teach them the lesson that they can’t have everything that they want!
Saving money is also a crucial part of being financially stable in later life, and so teaching your child about this process could be helpful. It’s also easy enough to do; you could get your child a small piggy bank or savings pot as a visual reminder, teaching them patience in the process, too. They don’t have to understand it or be some sort of accounting genius by the time they’re ten. Still, these sorts of small steps will solidify a solid basis and understanding of money going forward, which will likely help them with a variety of other tasks, too.
Saving for your child’s future
When your children eventually get to the point where they’re moving out, going to university, or looking to put into a big purchase, such as a car, for example, it might be good to have a savings account ready for them that can mature and provide them with a lump sum to get them kickstarted into adulthood. Saving a small amount each month when your child is born should leave you with a decent amount by the time they turn 18!
Having a financial portfolio with investment assets that your children can inherit is another smart move that you could make, depending on your financial situation. You could even take this further, with something like property investment, for example. Investing in a property for the long term and running it like a business could be something that you and your child do together, and with steady, long-term growth, it could flourish into something lucrative by the time you pass it over to them. RWinvest, an award-winning UK property investment company with developments scattered throughout the North West, state that it is one of the most lucrative investment methods out there at the moment, providing you select a spot that is projected to grow in the coming years.
Involving them in everyday tasks
Much like with the earlier point about it is important to keep your child in the loop with money, perhaps letting them spend it for themselves every once in a while and educating them on how it works and its value, it’s also important that you get them involved in some of the everyday on goings that surround money, too. For example, you could choose to get them involved in the weekly shop and give them some responsibilities surrounding the bills and finances in the house. Again, if your child knows how much you’re spending and how much menial things cost that they might not have thought about, it will help them to contextualise money, and thus be better with it as they start to earn their own.