Outlook Money
Financial Independence does not happen overnight; it is tiny habits that build over time. What people don't understand is that the earlier they are conscious of these habits, the more stable they will be. Here are 10 habits you can reinforce in your kids to help ensure they avoid mistakes.
Give them allowances and ask them to save up some of it every month. This makes sure they know how to budget and be mindful of their expenses.
Tell them how to prioritise what to buy and what they'll be okay without. This makes sure that they know what matters and what are extra expenses early on.
While teaching them to save, you can provide targets for them. "Save Rs 1500 in the next 6 months" This gives a target, and you can reinforce this with rewards as well.
A common practice, even adults should keep in mind, before making any purchase, wait it out, and if it still feels relevant and important, you can purchase it.
Teach them how to make a budget, how to audit their expenses and review where they lost money and where they made a smart move.
Even if it's too early, include them while you are investing yourself. This shows them that this is a safe and trusted habit, and it also teaches them how money multiplies with the right choices.
Whenever you are about to give them their next pocket money, ask them for a detailed list of where the money went, expenses, savings, etc.
Teaching this basic difference will make sure that they don't waste money on things that don't hold long-term value.
While allowances work, they wouldn't know how hard it is to earn money. Instead of handing money out to them, you can ask them to perform simple duties in exchange for the money.
Gratitude for anything is a sign of respect and thankfulness. Having money now does not ensure that it will be there tomorrow. Being grateful in the present ensures cautious spending.