5 things parents should teach kids about finance

1. Be honest about your financial situation

Instead of trying to conceal children budgetary situation of the family, let the children join in the process of decision about when to save and when to use the money.

Parents should not paint the financial situation of the family in front of the children, also should not make serious money problems chemistry with young. "Please teach your kids about money from objective reality," according to Steve Siebold (author of the book "how to think like the rich").

2. Give the child access to reality

Parents teach children about money as soon as possible. The parents teach children financial delays as possible makes the child more embarrassing later. Parents should encourage children to contact with money, identifying the different denominations, and count the money right from when kids know learn to count.

From the teach your baby how to count the pennies in piggy savings to how to balance an account, children will learn how to control your finances. And that will help children to be more confident with the use of money in a reasonable manner.

3. Stresses the importance of making money

The parents want to teach the making money very hard and need to respectfully make money. Many people try to teach children how to make money by working from home. However, if you don't treat the child will form the habit of just doing something if it is paid.

Eric Erickson, father of four boys share their experience: "my children don't need to receive a sum of money at all but they still do a few little things help neighbors or do low-wage jobs," Erickson said. "From when the big guys have a car, they are responsible for the gas and pay the maintenance costs. It helps them realize that they have to set a budget, and if used too many vehicles, they will spend much money for gas. "

4. Have a healthy relationship with money

Children often catch an attitude and behavior more quickly what adults think. If parents often face when receiving credit card bills or grumbled when to withdraw money from your purse to pay for a nominal fee, you can start thinking about money as something very annoying and troublesome.

Chris Miles, founder of the consulting company MoneyRipples.com finance says that should have the positive talk about money. "My experience shows that when parents referred to money as if they never have enough or something worse, the kids will grow up to hate and struggle with it during the life of them," he said.

Miles added that "the first thing I do every day is to avoid using phrases like ' we can't pay ' or ' we don't have enough money ', and instead use more honest way, such ' that is not our priority now ' or ' I think it's not worth such a price ' or ' we should do something to afford them? '.

5. Don't do it alone

Teaching kids good financial habits can be a challenge, it usually requires a lot of time and effort. Besides becoming the mirror for the children, the parents should let children exposed to people who have good financial control, that will help the children as adults.=