Many millionaires and billionaires are teaching their own kids how to save money as early as their children are five years old. These big time personalities know that the value of money is important to be learned young so that a sense of frugality could be instilled in their children.
Being frugal are some of the best well known secrets of rich people all over the world. They might seem glamorous and spending too much, but in fact, they are just being wise about their money. They have professionals in handling their assets and liabilities to ensure their longevity in being rich. Their luxurious lifestyle is often sponsored by business affiliates or colleagues although some would indulge in items once in a while but not all the time. Their discipline has been instilled to prevent them from spending their riches away.
That is why children should be taught the art of frugality and value of money no matter if their parents are filthy rich or average. When kids are still babies, parents tend to give them anything they want and this can lead them into thinking that they can have anything that they would want as they grow. If parents would want to discontinue this overbearing attitude, they must exercise tough love. There should always be an explanation as to why some rules are implemented and why they are being disciplined. Of course, with state regulations regarding the protection of children, disciplining children should be checked. It is actually enough to talk with the child so he can understand why what he might be doing is wrong.
When children can overcome their overbearing phase in the terrible twos, then they tend to look up to their parents regarding so many things. This is the "why" stages and parents should be patient enough to explain to their kids what, how, why, or when.
Instill frugality in your children as young as they can open a savings account under their name. Allow them to designate a certain amount of their allowance money into the bank or rely on the old reliable piggy bank to keep their savings.
Your child should learn not to waste anything. Encourage his young mind to make out of something that can still be usable, for example, paper cups that have been cleaned can be used as art material in school for crafts. During parties, tell him not to get what he can consume. Little things like these examples can be subconsciously instilled in the child. So that when they get older, they will not waste anything even if they can manage to afford it.
Spending habits in younger generation today is harder to curb down since online shopping, gaming, and other Internet schemes are accessible with just a credit card and a click at the mouse. That is why parents should always find it in their hearts to discipline their kids in spending style. Also, warn your kid about the danger of online shopping and other risks involved.
Exercising tough love on your kid can be painful but you know you are only doing it for their own good. Resist the temptation to cater to their every needs and avoid your kids from becoming spoiled brats.