Lesson #1 – ‘No’ means ‘no’. Parents need to learn how to say “No” to their children at an early age. In other words, do not give them everything they want.
Lesson #2 – Teach your children to share, and how to delay gratification. A good rule of thumb is to teach them for every dollar they receive it must be allocated into the following three categories: Giving (10%), Savings (50%) and Spending (40%).
Lesson #3 – Teach them personal responsibilities that they are not compensated for, i.e., make their own bed, fold their own clothes, etc.
Lesson #4 – Offer a monetary allowance based on chores that are accomplished beyond their personal responsibilities, i.e., vacuuming, yard work, etc. Set up a penalty system for chores that are not accomplished, or if poorly completed.
Lesson #5 – Post help wanted ads on your refrigerator that you would normally hire an outside contractor for. Allow the children to bid for the jobs, and let them know your expectations. Inspect their work, and let them know of areas they need to improve.
These key steps will help your children at an early age to achieve healthy financial responsibilities that will last throughout their lifetime. They will learn the value of money by working for it and obtain a good work ethic, learn how to manage the money they receive, and to be able to live financially independent.
Get more money resources from Crown Financial Ministries at http://www.allmomdoes.com/money/.