Turn financial difficulties into opportunities

Using financial situations as teaching tools can help children manage their own finances better.

08:13 01 February 2014

It can be difficult to try and live frugally when you have children. It is difficult to deny them, and sometimes even to explain finances and money management. While it can be stressful trying to live on a tight budget, it can become an opportunity to teach children about living within their means and maintaining a financial budget. Here are a few ways you can help your children understand, while also giving them valuable life lessons: 

 

• Enlist the help of your children in writing down each expense. This helps you stay away from potential unauthorised overdraft. Even authorised overdraft fees can cost a lot in interest charges. If you’re already on a tight budget, an overdraft can create a downward financial spiral. Children can be great helpers when it comes to reminding you of purchases and even writing them in a journal to help your record keeping. 

 

• When you are doing comparisons for the value of products you plan to purchase, you can enlist the help of your children to tell you which product is a better value and why. It is a great way to show children how mathematics is applied in everyday life. 

 

• Have your children help mark due dates for bills on a calendar. You can take the time to explain why you are doing that by telling them about late fees and what happens when the payments are late. It is also a good time to explain that late payments give you a negative mark on your credit history. 

 

• There are a few ways to increase your financial flow, even if it is only temporarily. Children are very creative and may even help you come up with some different ideas on how you can increase your cash flow. You might be able to clean out unnecessary items and sell them for a little extra.