Kids are expensive. They tend to get a bit more expensive as they get older, seeing as they need new clothes every year and start asking for toys and gadgets from the moment they learn to speak! As such, if you want to protect your finances as a parent, whilst your kids are rapidly growing into teens, you’re going to have to be smart about what you teach them. Sure, now’s a good time to give them a weekly allowance, but you should set clear boundaries from the beginning and never break them. To help with that, here are some tips to keep in mind.
Talk About Money Dangers
Money can be dangerous in general. The more we spend, the more likely we are to go into debt, and the more likely we are to take out loans with unfavourable terms. Impress the importance of avoiding a situation like this as early as you can.
Talk about how money can be worrying, and even scary, and sometimes people want to take more from you than they really deserve. Most of all, remind them that scammers exist out there, and if they offer something amazing for what seems to be a small price, don’t fall for it!
Get Them Saving
Kids need to learn how to save early on! This’ll help them carry the habit through to adulthood, which is never a bad thing. Start them small using their allowance; they get little by little every week, but if they want to buy something expensive, you’re not going to cover the difference for them! Or if you do, they don’t get any allowance for a few weeks in order to cover the cost. It might be a hard lesson, but it’s certainly a necessary one.
Invest in Life Insurance
Life insurance ensures there’s something left at the end of your life, for your kids to make good use of when they really need it. Indeed, life insurance for parents policies carry through on various terms, but mostly they pay out after the death of the person holding the policy. And if you’re concerned about the finances your family will have on an ongoing basis, this is definitely an option to look into.
Get Other Family Members Involved
If your children’s grandparents want to be involved in their future finances, talk at length about how they can help, and/or take some of the pressure off of your shoulders. After all, it takes a village to raise a kid, and you’re not going to be able to afford every single thing your growing teen wants from life! So ask their relatives if they want to contribute, especially if they’ve hinted at the idea before. Let them know what is really needed, such as a higher education fund, and go from there.
If you want to protect your finances as your kids get older, you have to maintain a pretty fine balance. Use these tips to help navigate troubles.