HOW TO BREED FINANCIALLY SUCCESSFUL CHILDREN

HOW TO BREED FINANCIALLY SUCCESSFUL CHILDREN.
Teaching children to manage money is not easy, especially with the changes in financial markets and parental anxieties about financial resources. As a parent, you teach your child how to use money and make wise decisions. Your example is the best teacher for children. Piggy banks and children can become a wonderful combination for parents to use to begin to teach the basic money management principles of getting, saving, spending and sharing money.
There are, however, some steps that can be taken to ensure the future success of your children.
Parents can teach money management to children in the family council meeting. This is a time when all family members talk about their needs and wants and what they can afford to do as individuals as well as members of a family. It is a good opportunity for children to see themselves as “partners” in the family business of managing available family income.
The main benefit of a family council is to help your child understand that spending is governed by income and your individual family’s situation and needs, and not by what someone else spends. When the family council implemented on a regular basis with open, honest interactions, both parents and children come to better understanding of one another.
A child does not need to know exactly what parents make or owe. Children should be given a general understanding of the family income- its principal source and its main expenditures. These discussions should be kept cheerful, free and matter of fact. The topic of family spending and finances should not become too great of a responsibility for young children.
Remember that no two families are alike; so, no hard and fast rules can be provided to help teach children learn money management skills. However, parents should be good managers of money. The kind of financial responsibility children find in their own home will exert a powerful influence on their adult attitudes towards the use of money.
The family council is a good way to teach children the value of saving for a definite purpose, instead of saving for the mere fact of saving. Teach children that borrowing money cost extra and must be repaid. Show children that by going without something now, greater satisfaction may be gained later. Discuss things that the family may want to purchase or do in the future. Talk about if this is a want or a need, and how to set financial goals that will allow the family to purchase the item or activity. Then, discuss how these goals may be met, either by reducing family expenses or increasing family income.
Children are not born with “money sense.” They learn by what they see, hear and experience, and parents have a very strong influence on all of these. Childhood is the appropriate time to learn about money management while we are able to provide them learning experiences that will benefit them in years to come.
Family councils are an excellent way to help children learn how to manage money by helping them understands what money means, how to make wise and satisfying choices, how to use money to get things important to them, and how to have money on hand for daily needs as well as for emergencies and future needs.

Children need to have money of their own to learn how to manage it. An allowance is a better teaching method than simply giving money about their request says the cooperative extension service, University of Arkansas. An allowance for children should be a set amount, should be paid regularly, and not tied to regular tax required of the child. When deciding on the amount of an allowance, discuss what items will be covered. The amount should be enough that the child has money to manage with no strings attached.
Money should not be used as discipline, such as for good grades or doing household task. If money is used in this manner, a child will get the idea that everyone and everything has a price tag. And, money should not be used to buy love or substitute for companionship.
But children and parents must work to make an allowance a learning experience. Be sure to praise any successful efforts. Let the child know when he or she is doing a good job in managing his allowance. Remember, a child learns from mistakes. Be consistent with payment and of what the allowance is to cover. Naturally, unexpected situations will arise. Use this as teaching opportunities. Chris Ajaegba, Lagos.