Having found yourself in debt over the years, you know the impact it can have on your life and that of your family. For many people, the answer to getting rid of debt has been enrolling in a debt relief program. While helping ease your debt burden, the program also gives you many tips to stopping the cycle of debt, many of which can be passed on to your kids. Thus, while you are completing your debt relief program, you can also teach your kids important financial facts. To give your kids a head start on learning life lessons about money, here are some things you can do right away.
Be a Good Example
To begin with, try to set a good example for your kids. This will be easier than you think, since enrolling in a debt relief program already shows your kids you are taking finances seriously. If you happen to have small kids in your family, being a good example is even more important, since studies have shown children's money habits are formed by the time they are only seven years old.
Have Them Pay for Items
Rather than tell your child how much something costs, give them a few dollars and let them physically hand it over to the cashier. Once they feel the money leave their hands, it will form quite an impression on them.
Wants vs. Needs
If you want to make sure your kids develop good money habits as they age, help them distinguish between what they want versus what they need. For example, if they need a new pair of shoes but are eyeing the latest video game, let them make a decision and then learn from its consequences. Once they realize they will have to make choices as to how they spend money, a pair of shoes may start to look much more attractive.
Avoid Making Impulse Buys
Since you are currently enrolled in your debt relief program, chances are you have eliminated most if not all of your impulse buying. However, your kids may have not yet grasped just how only a few impulse buys can quickly deplete a bank account, especially if they are spending your money. Thus, when your kids pass by something in a store and instantly want you to buy it for them, remind them of how much it costs, it's not on your list, and they will need to wait until another time.
Establish a Budget
If your kids are teenagers, this is an excellent time to have them establish a budget for themselves. Whether they receive an allowance from you or are working at a part-time job, getting them on a budget will help them learn the importance of planning ahead for purchases and paying bills.
Avoid Credit Card Temptation
When kids see their parents constantly pay for everything with credit cards, they come to think this is how it's done, and that being in debt is simply a way of life. Rather than give this impression, talk with your kids about the various things associated with credit cards, such as high interest rates, late payment fees, and so forth. Once your kids start college, they will likely be swamped with credit card offers. By having this talk beforehand, you can save your kids from quickly being thousands of dollars in debt.
Whether your kids are still quite young or coming of age and starting college, it's never too early or too late to teach them the importance of financial responsibility. By making this one of your top priorities, you can continue to set an excellent example for your kids as you complete your debt relief program, stop the cycle of debt within your family, and gain peace of mind.
