Your Child’s Financial Responsibility
Financial Responsibility: To Make Your Child Wiser And More Flexible In His Handling Of Money
Usually, important conversations that parents share with their children are limited to issues of religion and education, and talk rarely revolves around financial responsibility and the value of money, although it is one of the most important aspects in their future lives, especially as we have come to live in societies with heavy consumerism and suffer at the same time from disturbances And successive economic crises.
There is no doubt that when the child sees the money in the hands of his parents, he does not realize that they often made an effort to earn that money and that this money is a limited resource that cannot be wasted or underestimated its importance, and therefore economists presented a set of basic financial principles that can somehow give our children a material life Free from cripples and hiccups that include the accumulation of debts, bankruptcy, unemployment, excessive waste, and others, with the aim of not forming an annoying and tiring relationship between them and money.
The most important basic financial rules and strategies (financial responsibility) and their importance in a child’s life
T. Rowe’s ninth annual opinion poll stated that more than two-thirds of parents in the world feel hesitant while talking to their children about money, and many of them go into those conversations only when their children ask about it. In addition, the same research revealed that parents who talk to Their children once a week reported money more economically smarter than others.
If the child expresses his desire to acquire a game and wants to spend everything he owns on this commodity, let him take this step and test himself as a result of his actions, hoping that this mistake will teach him the importance of financial responsibility, adherence to a limited budget and the difficulty of bankruptcy
As a result, education experts see that these weekly conversations, skills, and habits that the child gradually acquires, not only benefit him on the financial level but also increase his self-confidence and give him a sense of independence and steadfastness when making any future decisions. In addition, economists encourage parents to let their children make financial mistakes at an early age and bear the consequences of their decisions, to form a clear picture of this swinging world, which is full of pitfalls and difficulties since childhood.
For example, if a child expresses his desire to own a game and wants to spend everything he owns on this commodity, let him take this step and test himself as a result of his actions, hoping that this mistake will teach him the importance of financial planning, financial responsibility and compliance with a limited budget and the difficulty of bankruptcy, and little by little he becomes more Seriousness and experience in any future decisions, and in order to develop these skills he must be taught the following skills:
First: Tell him that things cost money
Children at this stage need to understand that nothing in this world comes for free and that we pay a price for almost everything, which means that we do not have a print shop ready to provide us with money to meet our needs, but rather we have a certain amount every month, and accordingly we cannot buy what We like it at any time, and we always have to think about spending decisions and compare them with how important they are to the rest of our choices, our obligations, and our other material responsibility.
In order to implement this, try to let your child know the cost and price of the things that he buys or acquires in advance by giving him two dollars, for example, as a weekly expense. Buy that game or not.
Second: Teach him the value of saving
After teaching a child the first principle, he will gradually realize that he always needs to have some cash in order to get what he wants, and therefore you can take this opportunity to learn him also the importance of saving money for a few more weeks for example, especially since children always get money for their birthday or success At school, it is important to understand here that they do not have to spend that money and can postpone the spending process to purchase more important things.
It is one of the lessons that teach the child to control himself and his consuming desires and develop his thinking and critical abilities by asking many questions such as: Does he need for this purpose? Should I get it now? Can he buy it later? Are there more important purposes? Is the cost of the product proportional to its financial ability?
Third: Explain to him the limits between his capabilities and your financial capabilities
When teaching children about money, it is necessary to set clear boundaries between the place where your financial responsibility ceases and you begin to role their money, and vice versa. This teaches the child self-control and caution when spending and not relying on you with all stray and incoming, and therefore the child becomes less reckless in financial decisions and more able to manage their purchases and financial steps, also children learn when they are at an older age taking their place in the world as active members and contributors to the family and society, Without the need for others to take care of them.
Fourth: He taught him to invest in the simplest way
In this aspect, it is important for the child to know that he can always increase his property and financial savings, but he has to strive to reach this increase, and this can be achieved by preparing a list of tasks that he must accomplish at certain times such as arranging his holdings and games or studying his lessons or helping to Some household chores, although some experts believe that financial rewards should not be linked to household chores because children have to help with these matters on the basis that they are part of the family and not because they are paid in return for doing them.
And to that, children form their habits based on what we show them, they are affected by their environment and learn from the things they see regularly and repeatedly and if you allow your children to understand the basic rules of this world, they will grow with skills and become more wise and flexible in their dealings with financial matters and thus can ensure their financial stability In the future.
