It can be difficult making your kids understand money control.
Things can get really messy if you have a teen on your hands demanding a new computer or a car.
Somewhere down the line, you will need to acknowledge to your child that spending is not bad in itself. You will need to teach them the difference between necessities, necessaries and luxuries.
These tips are greatly appreciated by parents in helping keep their kids’ spending on track without entering into a quarrel or grounding them:
1. Use Debit Card for Kids
Get your kids in the habit of carrying debit cards instead of cash. This will go a long way in curbing impulse purchases.
Your child will have to wait at an ATM line for cash that may be all the time they need to change their minds.
To avoid a quarrel about money, you need to do everything in your power to avoid altercations with your child. Having them use their own debit card may be an important step in that direction.
2. Open a Savings Account for Your Kids
All kids want instant gratification. This can be difficult to avoid since everything is easily available.
However, by opening a savings account, you may put a speed bump in the process. Your kid may need to go to a bank or an ATM to withdraw funds.
You can create a separate non-savings account for money they can run through. This will keep any financial talks to a minimum.
You will need to set ground rules though.
For instance, let them know there will be no deposits made to the account before the week or month is over.
3. Suggest an Overnight Rule
You need to understand that kids are still developing their rationalization abilities and impulse control.
They want to purchase whatever catches their fancy.
Unfortunately, interest is lost as soon as they buy it.
You can encourage your child to sleep on it and to buy what they want the next day.
Sometimes, waiting 24-hours helps children put things in perspective.
It may be the only time they need to assess the pros and cons of buying the item versus using the money for something else.
4. Set Specific Goals for Your Child
You may want to take a night off each week and sit with your kid to put things in perspective.
Work with them and try to find the things they really want.
Is it clothes, accessories, gadgets or something else they have their heart set on?
Kids will be less likely to toss their money on the first thing they see if they know what they are saving for. You can offer a matching bonus to your child to keep them motivated.
5. Use Visual Tools
Kids think and understand differently from adults.
They understand better with visual tools because their rationalization, abstract reasoning, and analytical skills are still developing.
You should use visual tools and practical examples wherever possible.
Most quarrels are because of miscommunication. You won’t have any trouble if your kids understand what you want from them.