Have you ever had an argument with your partner about finances? I personally believe that many arguments at home can potentially stem from money and financial stress, and as you may be aware, financial and emotional balance are keys to peace and harmony at home.
So how financially literate are you?
Are you able to discuss your budgeting with your partner in a calmly?
Are you spending more than you are able to pay back (using credit cards)?
Handling your finances and household budget properly is an important element for creating a harmonious household. Create a budget of what you need and would like, and work together as a team. For example, identify what you need, what to budget for, and what you would like to have for the next twelve months. This way both partners will understand where they stand financially.
Teaching your children about money
By equiping your children with the tools to learn and respect the importance of being financially responsible, you are grooming them to be financially independent in the future.
Below are a few suggestions that may help your children to understand the value of money and financial management.
For younger children
- Parents can teach a lot through pocket-money. Learn to negotiate when they see something that they like. If they want to purchase a particular toy or an item, ask them about the cost. Help them understand how much they would like to spend using their pocket money, and how much they need to supplement it. Ask them what they are planning to do about the short fall.
- Open up a savings account for them and teach them the value and advantages of savings.
For older children
- Guide them about different types of savings accounts and investments. Expose them to the household budget, and teach them to search for discounted or sale items whenever possible.
- Provide examples about the importance of saving and living within their means. Model this through your own actions.
- Encourage them to get a part time job. Not only does it teach them to be responsible for their own expenditures, it also gives them a sense of pride.
Once teenagers can find a part-time job, they can actually contribute to their own expenditures, and do not have to constantly ask for money from the parents.
Being able to discuss household budgets and finances is also a part of communication skills and family connections.
Have a connected day with your family.