Raising financially responsible kids is crucial for their future success. Spending a little extra on them now might seem harmless, but instilling good money habits early on can save both you and them from financial troubles down the road. Here’s what to watch for and how to help them become financially savvy:
- Understanding Plastic Isn’t Magic: Kids need to know that cards use real money, not magic. Introduce them to Verity, where they can manage their allowance on a prepaid VISA debit card and learn that spending has real consequences.
- Encouraging Savings: Teach them to save by setting up saving goals using the Verity App. Short-term goals for toys can transition to longer-term goals, fostering a habit of saving for bigger things.
- Teaching Delayed Gratification: Saying “no” sometimes is vital. Help them learn this by connecting chores or tasks to earnings using the Verity App. This teaches them that money is earned through effort.
- Avoid Bailing Them Out: Let them experience the consequences of running out of money. Bailing them out won’t teach them financial responsibility.
- Budgeting Skills: Introduce them to budgeting using the 50/30/20 rule through Verity. This teaches them to allocate their earnings wisely – needs, wants, and savings.
- Managing Peer Pressure: Kids may buy to keep up with friends, which can lead to unhealthy spending habits. Use Verity’s prepaid VISA debit card to set spending limits and instill moderation.
- Start Early: It’s never too early to teach kids about money. Use Verity’s platform to give them their own money management tools, fostering independence and smart financial choices.
By guiding your children towards financial responsibility using Verity, you empower them to make wise decisions, avoid debt, and build a secure financial future.