It is considered as a good way to help the children understand and esteem the values of the money when the parents give the children the opportunities to earn money such as some odd jobs or part-time jobs.
One of the most crucial things the parents should do to make the children have the success regarding to the finance is to give them useful knowledge about the money. According to the recent research about this problem, it proved that the children are provided the information about the money as well as the values of the money at least once a week by their parents will be more intelligent than those who don’t have the chances to learn about these things.
Basing on the suggestions of the Business Insider, there is something below the parents should do to help their kids become the billionaire in the future.
- Giving the children a small sum:
One of the best ways to set up a sound basis of the finance for the children is to give them the chances to learn how to manage the money when they are very young in age. Paying some money for the children when they help the parents do something is also an effective way to teach them about the importance of labor or work to get the things they desire. According to Bill Engel who is an American financial specialist, he said that if the kids wish to have new toys or want to go out with their friends, they should work and save money. As a result, they will be aware of the value of the money and reduce the unnecessary expenditure after they are in charge of their self-managing sum.
In addition, thanks to the knowledge about the money the children have gotten, they know what they should do to budget which is the basis of responsible behaviors for the money. Besides it, the parents are advised that the children should not be prevented from making the wrong decisions in spending money for something. By doing that, the kids will draw the lesson from their mistakes.
- Encouraging the children in saving money:
According to the result of the survey of the T Rowe Price Company that is headquartered in Baltimore, Maryland, US, about 51 percent of the children questioned immediately spend the grant they have received. Therefore, the parents should teach their kids how to dominate their desire to do the money-saving purpose for their future.
The parents can ask the children to save a certain portion in the sum they are given to set up the deposit account in the banks that have the money-saving programs for children. Although it is convenient and easy for the parents to open saving accounts with an amount of money for their kids online, it would be better for them to take the children to the bank to do this.
What is more, the children should be shown some alternatives of spending all of the money the parents gave them or saving money for something. If they choose the second way, the parents should provide them with the support of money to help them do their plan and understand the profit from the idle cash.
- Opening the securities accounts for the children:
Perhaps, someone thinks that it is too early and unnecessary for the children to contact with the stock market. However, some educational experts said that teaching the kids about the stock market and encourage them in investing in it when they are in very young age will help them not be new to the surroundings when making the decisions in earning money for their life after retirement.
If possible, you can open the securities accounts for your kids and put it under your own supervision until your kids are old enough to manage them. Definitely, you had better let your children choose a company they like and then take them to the stock company to buy the shares as well as to see how it works.
- Giving them your instructions about some works:
In reality, the part-time or seasonal jobs kept a significant position in teaching the children or teenagers about their duties or responsibilities, the value of the money, time management, the way to maintain the discipline when working.
At the age of 16, the daughter of Engel began the first work which helped her define what she has desired to have. After getting the wage at the first time, she understood that she should do in one more hour to have enough money to buy her favorite cup of coffee.
Therefore, if the kids have the opportunities to do the works they are fond of as care of dogs and cats based on their love for the cute animals, they can learn skills to prepare for the future jobs.
- Instructing your children to open a deposit account:
Apparently, the supports of the parents play a crucial role in helping the kids to manage their accounts.
Engel said that he had had no account of money until he entered the university. Because of it, when he started learning in the university, he had no experience regarding to using checks or ATM card and checking if he had enough money in his account. Conversely, his daughter had a deposit account with the support of an application in the smartphone to manage her account.
- Giving the chance to contribute to the university expenditure:
According to the latest survey carried out by T Rowe Price, there are about 60 percents of the children asked desiring that their parents will pay for their college cost. As the advice of the Business Insider, in the case of the fact that you are rich enough to pay for the university expenditure of your children in the future, you should not do that.
It would be better for you not to cover the fee of learning university for your children. That is considered as the best way to make your children more responsible for their study. If they have to contribute their money to pay learning fee, they will study with the serious attitude.
In conclusion, Engel presented his opinion that none of us highly admitted that the importance of what we are given are as valuable as of what we get by our own abilities and labor power.