One of the great problems of our society and the possible cause of many of the errors committed in the last few years in the field of finance, is the absence of teaching of principles of the economy as basic to the young. The schools do not have in their curriculum courses of the economy of home, family budget, responsibility, credit, etc To increase the problem, in many homes, the topic of money is considered as tabu as the sex.
In some homes everything related to money is a secret (sometimes even between the couple of parents). But they begin a dialogue about the monthly payments of utilities, such as make payments online, such as using the credit card, how to buy the best deals, even getting to explain that it is the mortgage and as a home to purchase.
1. Learn how to Spend
It is imperative that your children know how the money is spent, and to learn that the money is not stretched, decisions on what to buy lead to let you buy other things. If they grow up thinking that you can buy everything and not need to take decisions on what to buy waiting when you have access to a credit card for you to see the sad results. Give them a weekly allowance, and that they themselves learn to decide between the cinema, his clothing, video games, or gasoline, that is what they want to buy.
Either using the computer (Excel or Quicken) or paper and pencil, each expenditure must be written down and categorized. If you do not write then disappear, and you will hear phrases like “my money makes me water”.
2. Learn how to Save and Invest
In the economy today every one of us has to create his own account withdrawals. If children learn to save and invest your best ally will be the compound interest. As parents fosters savings and investment, requiring the children to put aside a certain percentage of their earnings, and their income from a job they are out there (babysitting or mowing the lawn).
3. Learn to Spend Less than you Earn
It sounds easy, but in truth it is one of the principles of the economy but ignored at the level of countries but also of households. This principle goes hand in hand with teaching our children to choose what you buy carefully.
Prepare your children enseñandoles how difficult it is to save and as bringing your own lunch to work saves money. Work together to find in the internet insurance on cars insurance rate lower than the current one or a better plan from a cell phone.
Once more we return to the paper and the pencil. Enter the amount of money that enters and the amount of money that comes out, the numbers don’t lie.
4. Learn how to Find the best Price
It is your responsibility to teach your child not to buy the first car that you drive or rent the first apartment you visit. Learn to not assume that the price discount is the best price. There has not been a time easier to compare prices, the only thing you need is access to the Internet. Not only are web sites that compare prices, but also offer comments and <> of each product to decide yourself which one is the best for the price you want to pay. If you are responsible to your children of your expenses we also teach them as to “stretch” their money buying bids.
5. Learn to Hate Debt
Emergencies will always occur in the home and in our personal lives. The important thing is to be prepared by creating a fund of emergency money and not have to resort to using credit cards. Teach them to your children that debt limits your options in the short and long term.
6. Learns to Live as a Student
When your children decide to move out of your home are going to take with the surprise that you no longer enjoy the comforts to which they were accustomed. If you were to buy a new car every 3 years, or change the sofa every 5 years or buy the latest iPhone the day it goes on sale, they expect to live in a similar way (and guess which object made of plastic are going to use). Teach them to your child that you do all of these purchases because you can pay in cash and that it was not always so.
7. Learn how to Identify your Plans
The youth of today need to learn that unless they identify a goal cannot reach it. The goal does not have to be only long-range (“retire at 55”), but it should be short-term goals (“doblare my salary in 2 years).
As a father or mother does not flee from one of your responsibilities, our children depend on us to learn about money, how to use it and how to use it as a tool more to make the future peaceful.