I think that the current generation of parents has an understanding of financial hardship that the previous one hasn’t quite got to grasp of. How often do you hear older people complaining about a lazy generation that can’t be as enterprising as they were? The truth is that the income rates are stagnant and student loans are piling up. These are considerations a lot of us weren’t taught because our parents didn’t have to deal with them. But they bring us lessons we can pass to our kids.
The vulnerability of credit
As your kids grow up, they might find themselves eligible for credit options sooner than they think. From credit cards to overdrafts. It’s vital to teach them that this isn’t free money, it’s not theirs to spend. If they can’t pay it back, it can cause them a lot of difficulty and stress down the line.
The importance of the budget
Understanding your money is more important than anything. They need to know that it’s not all spending money. That some needs to go to protecting their future. Bailing them out time and time again isn’t going to help them. Instead, help them manage their money and budget not only for their own spending, but for the emergency cases where those savings are going to come in handy. This teaches them responsibility and independence.
The necessity of income
Creating an allowance for your kids is a good idea, but they should learn that it doesn’t come free. If you have an allowance, let them work for it. As they get older, you might even want to scale back that allowance and encourage them to find a job for themselves. They need to learn the importance of steady income that they are in sole responsibility of. As they grow, you need to have less and less of a role in their employment, too. Offering a little advice here and there is good. Writing their resume isn’t.
The dreaded student loans
The tips above are going to combine together to help your kids deal with one of the biggest financial challenges of young life. The student loan. We don’t have enough conversations about student loans because a lot of us spent years avoiding ours. However, sites like Student Loan Hero can make it a lot easier for them to create plans and find refinancing options that could make it significantly more manageable.
The truth about financial hardship
If there’s one lesson that’s particularly hard for a kid to learn and an adult to teach, it’s financial hardship. A lot of parents try to support a lifestyle that fits all their kid’s wants while hiding their own financial insecurities. However, that can end up teaching them the worst of your financial habits. When they’re old enough to understand, you need to talk to them about the family’s finances and what’s creating the challenges you’re facing.
We all fear for the future of our children. There’s nothing to stop them from making the same mistakes as us except us. So, make sure you’re giving your kids the education they won’t get in school.