Financial independence is something that should be acquired as early in life as possible. Do you want to make sure that your kids are secure for as long as it takes to get a job without you having to pay for them for life? These simple and smart moves listed below are going to ensure that your children do not need to depend on you to support them for too long. Here is what you need to do.
Open a Savings Account at Birth
This is the first thing that you can do as an intelligent and concerned parent. Don’t wait for your child to grow up before deciding to save some money for them. Instead, the instant your first-born comes into the world, start saving for them in their very own bank account. The amount of money does not have to be too much or even consistent each month. But make sure that you take at least $50 out each month and put it in the bank. Of course, it can be a lot more if you can save it. You can keep the account as a trust fund for their education or keep it for emergency situation when serious money needs to be spent on your little one.
Learn to Say No from Time to Time
As the child grows up, do not make an effort to fulfill every demand. If you don’t teach them what it’s like to be told no, they will learn it the hard way when they grow up. Research shows that most parents struggle to pay for everything their child demands while growing up, so much so that they end up acquiring too much debt. This is something you need to avoid if you want to make sure that your kid is financially independent by the time they grow up. Say no and explain why you said so. Teach them the importance of not buying everything their heart desires and saving money for actual needs.
Teach the Kids to Use a Piggy Bank
When saying no, it is also the perfect opportunity to teach your children about the art of saving. From a very early age, get them a piggy bank where they can store the money they save in order to buy whatever the liked and wanted you to get them. This way they will understand all the hard work that goes into earning money and saving it for essentials.
Once they are old enough to have a band account, get them a savings account of their own. Do not stop your savings account for them, but let them save some money for themselves as well. This way, once they are ready to move out, they will have significant savings that can be used for college or some business they may want to invest in.
Talk to Them about College and Career Options
From the time they are in middle school, you should start discussing career and college with your children. They will become more serious and help you save money for the fees. This too is going to create financial independence pretty quickly.
Talk to your children about savings and show them how it’s done in order to become them financially concerned and independent.…