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This Father’s Day, Pass on the Gift of Financial Freedom
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For more information contact:
Tanisha Warner (713) 394-3202 |
Release Date: June 7, 2006 |
Being a father is an awesome responsibility. In addition to providing children with the basic necessities of life, fathers are responsible for setting good examples and teaching their children smart financial habits.
As with any difficult and necessary task, the earlier you get started, the more effective your influence will be. Allowing children to make financial mistakes while they are young is much safer than sending them out into the world of zero percent financing and no-interest credit card offers unprepared.
This Father’s Day, make a pledge to address the importance of credit, budgeting and saving with your children. Rearing a financially independent child could be the best gift you ever gave yourself, and your child. The following tips from Money Management International can help parents open the lines of financial communication with their kids.
• Involve them in financial planning. While a young child won’t understand investing at the complex level of an adult, a savings account in his or her name will help them understand the benefits of saving money and watching it grow.
• Give your child a chance to be in control. If you give your child an allowance, let him or her be in charge of spending it. This is a great way to teach the relationship between their actions and the positive or negative consequences that follow. You may be surprised at how quickly, or slowly, your child chooses to spend their money. Don’t forget that mistakes are part of the learning process; give your children the chance to learn from their mistakes.
• Provide extra income opportunities. Help them learn that money is something that is earned, not something to which they are entitled. Set up a list of chores and give them dollar values based upon level of time commitment or difficulty of the task. This is a great way to teach children about the value of hard work.
• Take your child shopping with you. Explain to them why you make certain decisions while shopping, whether you are searching for a new car or some yard tools. By showing them the details you take into consideration, you’re teaching them to be a wise consumer.
“Most importantly, ensure that your children learn the difference between needs and wants,” said Cate Williams, vice president of financial literacy for Money Management International. “The ability to make good financial decisions will serve them throughout their lives. Take time to examine your own spending habits, and make sure you are practicing what you preach, because children learn more from actions than words.”
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Money Management International, is a non-profit community service organization that provides confidential financial guidance, counseling and debt management assistance to consumers. MMI helps consumers trim their expenses, develop a workable budget, lower their debt payments and repay debts. Services are available by phone. To visit with an MMI counselor, call toll-free 1-800-762-2271- 24 hours a day, 7 days a week. Spanish speaking counselors are available. Consumers can also learn more by visiting the MMI home page at www.moneymanagement.org.
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