Debt is a common problem within the UK, and many people find themselves slipping into a continuous spiral of debt without even realising how they got there. Actually, genuinely exceptional circumstances aside, avoiding debt is frequently a matter of fostering wise money-management, but if you get into bad habits early on in your life it can be difficult to break out of them as an adult, when the threat of going into debt is looming large.
Because of that, there is a real need to get children into good habits with regards to money at a very young age. Doing so will set them on the pathway to effective financial management, and encourage them to make the right choices in their adult lives. Here are a few strategies you should prioritise:
Teach Children to Save
Your foremost undertaking should be teaching your children to save money. Encourage children to put aside things like loose change so they can begin to see it accumulate, and similarly educate them about things like bank accounts. You could even save up for something as a family, or entrust your child with an additional allowance if they manage to save up a certain amount of money. Reward schemes like this will help to make the experience positive, so they will begin to save up far more.
Waiting and Choosing to Spend
Teaching your children to save will show them that money can be built up over time, and this will display that sometimes they need to wait before they spend. This is an essential habit for them to embrace. Similarly, you need to show your child that sometimes they will have to choose between several things to purchase, rather than simply being able to obtain everything they want simultaneously. Anything to the contrary could create habits that may eventually lead into debt.
Use Pocket Money/Allowances
Some parents don’t approve of allowances, but pocket money is actually teaching children to be accountable for their savings, and it is also a fantastic way of introducing them to the concept of ‘earning’. If you reward children for doing household chores and the like, they will soon understand that money doesn’t appear by magic, and getting them into good money-management habits like that will prove invaluable in later life, when they may otherwise be tempted to take shortcuts.
Encourage Part Time Jobs
Part time jobs should be encouraged for older children, as it provides them with the opportunity to be financially ‘stable’. Obviously, this won’t actually be the case at such a young age, but if their pocket money doesn’t come from you then they will have to budget for their purchases themselves. Being able to stick to budgets is important when avoiding debt, and if your child runs out of money before their next pay-day, they will learn a valuable lesson for later life.
Here at Scottish Debt Help, we specialise in guiding people towards debt solutions in Scotland, although we can also assist you in cases where you have been mis sold PPI too, as well as a number of related circumstances. This means that if you do find yourself on the threshold of financial trouble, you can rely on us to help you out of it. To find out more about our services, don’t hesitate to contact us by calling 0800 011 2322 today.