Friday, 4 September 2015

How do you get your kids on their own two feet? - Guest Post!

 
 
One of the questions I get asked regularly is about how I felt when my eldest children left home and went off into the world on their own for the first time. After I reply that it was bitter sweet but rewarding, people seem to want to know about the more important question: how I raised my kids to be responsible adults adept at handling their own finances!

Increasingly, it seems that young people are staying under their parents own roof longer than ever and this so called ‘failure to launch’ has some experts worried that our kids’ generation has been enfeebled by too much hand holding and financial support. I am here to tell you that this does not have to be the case – empowering your children and teaching them about their own financial fitness can be done at any age. Here is a list of the things that I did with mine, from the time they were tiny and wee until just last year!
 
Give them an allowance… and chores – Most children in the UK get pocket money from their parents, but do all have to earn this cash? Do not – and mean do not! – give them any money without insisting that they earn it by doing age appropriate chores around the house.

Own your own business? Simple bookkeeping and filing tasks can be delegated to kids from the time they are 12 years old.

Involve them in the budget planning – We always had a quarterly household budget meeting during which we treated the kids like shareholders in the ‘business’ of our family. They saw how my husband and I planned the budget, realised that money comes with responsibilities and always knew the justification for why we spent money the way that we did. We also let them have a say in what to do with surplus ‘treat’ money! Involving kids in budget planning is an excellent way to teach them about their future.
 
Show them your credit reportUse your credit report to show your kids the importance of staying on top of your personal finances, and encourage them to check their own credit report at least once per year in order to protect against identity fraud and a bad rating.

Model good financial behaviour – This one is probably most important. If your kids see you frazzled or scared by your own financial situation they will learn that money is something baffling that cannot be controlled. By showing them that you are well in control of your finances and your credit report you are showing them how to act in their own lives as adults.

Some parents wonder if they should help their kids learn about life by letting them fall flat on their feet or babying them into adulthood, but I say neither. By empowering and educating them about money you can find a comfortable middle ground and ensure that your little birds leave the nest with their heads screwed on the right way about money. This is one of the best gifts you can ever give your kids.
 
Guest Post

33 comments :

  1. I REALLY wish my parents had taught me how to be better with money! Sadly they were not great themselves and I did pick up some bad habits which took a while to un-learn. I will have to remember this post so as not to pass on bad habits to my future children! x

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    1. Thank you! I have got better with money over the years but my parents were not to blame....It was all my own doing.

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  2. My parents did such a good job instilling the right attitude and ethics when it comes to money and the responsibilities associated with it. I still have a poem my grandfather gave me about looking after the pennies.

    Angela

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    1. How lovely....Well done your parents x

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  3. I am facing the start of my child's independence at the moment. She starts big girls school on Wednesday. This all seems so worrying. I don't worry about her confidence and independence I worry about mine! :)

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    1. Good luck! I hope your girl has settled into school OK!

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  4. I love these tips! I wasn't Always expected to do chores for my pocket money, but at one point when I was about eight, my parents rose my pocket money provided I do turn the light sout when leaving my room. They explained electriciyt costs money and if I leave my lgihts on all the time, they won't have the money to give me extra pocket money. When I was about fifteen, I had an argument with my parents over pocket money because they gave my sister more than I'd gotten at her age. At that point my parents encouraged me to make a budget and show it to them so they could decide how much I needed. They ended up giving me more than I originally asked for because they saw I handled it responsibly. I don't work now (am on disability) so in this sense th econcept that I have to earn my money is relatively foreign to me (the closest I came to a job was a few evenigs of babysitting). However, I do handle my own finances.

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    1. Well done your parents...It sounds like they were really fair.

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  5. Well said, I believe children should learn that if they want things then they should work for them. A valuable lesson in life x

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  6. I love these tips. I just moved home, I graduated University in July. My mum always instilled really good sense of money and responsibilities in me, which I'm so thankful for.

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  7. These are great tips but I think there comes a time when a child/young adult will make their own decisions, regardless of what they've been taught by their parents. Sometimes it takes a mistake to learn the value of money. I'm not saying teaching children is a waste of time either, I just think you can't always count on it. :)

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    1. Ohh yes! I wouldn't know what I know now about money if I hadn't have made mistakes....
      Thank you!

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  8. The idea of a family budget meetings so clever. My parents were quite strict with me when it came to understaning money and making sure to never get in debt of which I'm grateful x

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    1. It sounds like your parents did so well...Thank you!

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  9. Great tips! I really do think by giving your child an allowance and chores to do gives them a head start in life and they learn to appreciate things more. Or at least I did anyway! x

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  10. I love this post. If you give children an allowance and give them chores from a young age they will put this in there routine early and this will help them in their adult life.

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  11. These sound like some fantastic tips, I'm sure it can really help get them started. x

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  12. To my mind, good parenting is about providing children with the necessary skills and abilities to lead fulfilling, independent lives as adults. Understanding finance and managing budgets is all part of that and expecting a child to earn their pocket money seems like a great idea to me.

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  13. These are amazing tips! I probably would use them if I had my own kids :) x

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  14. I know I need to do more to get my teenagers ready for the big wide world, but every time I try my husband seems to block me :/ He sees its easier to just do it himself. Need to fix this asap.

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  15. What a great post, and will be putting this to practice with my daughter x

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  16. Great tips - I don't want to think about Boo being independent just yet though I need some more years of her needing me!!

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  17. Such a great post so with so many good bits of advice x

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  18. Great guest post and tips. My mum and dad always taught me about the importance of a good credit rating and managing my money. I've been paying for holidays since I turned 17 and it's a great feeling knowing you worked for something.

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  19. I wouldn't know what to do. I don't have kids yet so your post is such a great source of advises!

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  20. Going to University really gave me the independence I needed!

    Daniella | Freshly Pressed Beauty

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  21. This is a really great post and excellent ideas on getting your children involved and aware of costs of things and budgeting. Thanks for sharing

    Laura x

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  22. This is a great list and I think giving responsibilities in bits like budget planning or taking care of pets are great ideas x

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