Parents are responsible to teach the first financial tutorial to their children. As your children learn from you, therefore guide them effectively by making your financial management as a milestone for them. Take benefit from all the situations which could be helpful to make a routine of saving money. Some of the monetary tips to guide your children are given here.
For the Age of 10 Years:
Subject to the attainment of proper age limit fix a stipend for them.
It could be their first salary. In return a five years old child could be refrained from purchasing toys. A ten years old child could be responsible for petty household tasks. Set a regular payment frequency. This will let your child be familiar with salary encashment.
For 10 to 15 Years kids:
Start transferring the expenses related to your child out of his pocket instead of your pocket. For an instance, if your child is fond of games, transfer or limit his sports expenditures, and do not forget to mention if the limit is exhausted, he would be responsible for the excess.
For 15 to 18 Years:
When they attain the age of 15, the time span of their stipend could be extend from one week to two weeks. And even after the attainment of 17, one monthly payment could be set.
Guide your youngsters their financial planning and facilitate them to spend their amounts wisely so that they could maintain their financial liquidity throughout the month. Proper training will benefit them after they start their college life.
For Age of 11 Years:
Insist them to save at least 50% out of his incomes deposit it into their bank account. Guarantee them that all the saved amounts shall belong to them however their saving targets must be achieved. It needs you to stay away and let him build a valuable saving target like a partial contribution towards his educational expenses.
For Age of 11 and above:
Look the options to link rewards on their savings. For an instance you shall add some amount in proportion to their amount of savings. It is a proven encouragement technique.
If the routine expenditures of your children are more than his fixed stipend, encourage him to make money from some suitable jobs.
Cash and Credit Management
For Age of 11 to 15 years:
Think to give stipend of your children when they become adult, a portion in cash and the remaining in kind of credit or debit card limit. This practice will let them know how manage their finances when they are not using cash. Their remaining limit may be directly transferred to their saving bank account through e-banking.
For Age of 15 to 18 years:
Guide your children to take care of their bank accounts and they shall become aware of banking transaction fees. Guide them to use their own amount instead of using drawings to avoid financial costs.
For Age of 18 and Above:
The Credit Card Act 2009 requires 21 years old persons while submitting their credit card applications needs to show that they have income stream to pay off their credit card bills or to be joint holder of a card with some one who has the income stream. When you are going to become a joint holder with your children, guide them in detail, how to use the credit cards in a sensible manner.
If they use credit card with responsibility, it will build their good credit card history. A good credit history will allow them to be eligible for better credit provisions. Keep a close watch on their credit cards and analyze the monthly bills carefully and pay regularly.
by Gemma Maddock