Before your children step out the door to college or adulthood, there is no better gift you can give them than knowing how to live on a budget. Understanding the importance of saving money and budgeting is as important to a nineteen-year-old’s life as understanding UFX Markets Trading is to investors.
What your kids need to know before they leave home:
* Budgeting: It’s probably a good idea to get your kids started on a budget before they leave home. Their financial life will always be a mess if they don’t understand that spending more than they have is a bad idea.
* Spending: It’s a great idea for the kids to understand the difference between what they want and what they need. Teach them about impulse buying and how to steer clear of buying things they don’t absolutely need.
* Borrowing Money: This one might come with a bit of angst. It’s hard for kids to understand the impact of borrowing money and the consequences for not paying it back. Children need to know there is a difference between borrowing money while investing in their college future and borrowing money to pay for their weekend partying. Borrowing money from a family member can often lead to hurt feelings if the money is not paid back on time.
* Saving Money: Saving money isn’t easy, especially for those who are on their own for the first time. A good protection for your children is to help them understand that saving money is a protection from unexpected expenses that will arise.
The above lessons are some of the best gifts you can give your children.