Raising children is both rewarding and expensive. As children progress through middle school into high school, their expenses increase too. While you may be on a tight budget and trying to live within your means, there are plenty of people out there that haven’t a clue what budgeting is. As the consumerism of high school carries your child away, you may have to instill some good spending habits to ensure your kids know the value of a dollar. When they ask for a $150 pair of sneakers, explain to them the difference between a need and a luxury. They should understand that some types of credit is best used to fund emergency purchases and not luxury items.
We raise our children to be safe when crossing streets, to stay away from strangers and to be discriminating with their relationships, but very few parents teach their children about money. If you cannot provide an allowance for them, help them learn why you make the money choices you do. They might even find it fun to learn how to spot a good deal.
One of the best things to teach a child is the concept of a budget. If you begin to show them what a typical budget looks like, they may become more familiar with how to save and how to spend wisely. Show them that a negative balance typically costs more in terms of fees than those that are imposed on late bills and the inability to get future credit.
You should explain the importance of credit and discuss credit cards and the debt that comes along with them. Be sure to explain how a job builds a credit rating and gives a person some leeway when emergencies arise. If they become informed in all types of credit and how to budget and spend wisely, they will be far ahead of their peers in knowing how to manage their lives in comfort.
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