Planning for the Future: Teaching Your Children Financial Responsibility

Managing money responsibly is not something that people instinctively know—they have to learn it. As a parent, you’re in charge of making sure your kids are ready to live in the adult world, teaching them habits that will help them for the rest of their lives: eating healthy, exercising, and, yes, exhibiting financial responsibility.

Three Tips for Teaching Financial Responsibility

Many parents start their financial training by giving their kids an allowance, which is an excellent way to begin teaching them how to handle money. But this is the just first step.

Here are three more ways to help your children learn financial responsibility and begin thinking about planning for the future:

1. Teach by Example.

If you don’t exhibit financial responsibility, how can you expect your children to follow suit? Kids learn best by example and by modeling restrained behavior, you will teach them how to handle money in a responsible manner. Explaining your financial decisions to your children will also help them understand why you made the choices you did.

2. Allow Your Kids to Learn from their Mistakes.

Kids are going to make mistakes when it comes to money. Maybe they spent all their allowance, and now they’ve come running to you to ask for more. Rather than bailing them out, allow them to live with the consequences of their actions. Next time, they’ll be less likely to be so wasteful.

3. Emphasize the Importance of Planning for the Future.

This can be a difficult task for children who often live in the moment, but it’s very important. Talk with your kids about your own financial planning and explain why you’ve done what you’ve done. When they’ve reached an old enough age, help them begin planning for their own future by opening a savings account or drafting a budget.

Working with an Experienced Estate Planning Attorney

Teaching your kids to value the importance of financial security is a great first step towards protecting your family. However, if you haven’t created a comprehensive estate plan, then you haven’t been properly planning for the future. Working with an experienced estate planning attorney is the best way to protect your children now, and after you’ve passed on.

Contact The Law Firm of Christopher W. Dumm

At the Law Firm of Christopher W. Dumm, we have many years of experience helping families plan for their future. When it’s time to put your family first, give us a call at 417-623-2062 or fill out the contact form below.