New York, NY (PRWEB) October 18, 2013
Money Mermaid released four tips designed to assist children in developing healthy and responsible financial habits following the October 18th PBS News article entitled “How to Teach Children to Be Savvy Consumers: Let Them Spend”. The article advised parents to help their children better understand money and the weight of spending money. Money Mermaid offered additional tips designed to teach children, from a young age, the importance of spending and saving money wisely to develop financial independence and confidence.
Vicki Hoefle’s PBS News article discussed giving children an allowance in order to teach them the power of both saving and spending. This is done through giving children an allowance and then giving them the freedom to spend their allowance as they see fit. Though parents may encourage saving, the hope is that children will eventually see the detriment of spending all of their money in a single transaction, rather than saving money in order to accumulate greater wealth.
Money Mermaid offered these tips to help parents teach healthy and responsible money management:
1. Exhibit healthy money management as a parent. Children learn by example, first and foremost, and will likely adopt their parents’ habits and traits. To help children develop a healthy respect for finances, lead by example, whether this is through debt consolidation, or simply avoiding the use of credit cards altogether.
2. Allow children access to money—but do not offer money freely. Though parents should not refuse to meet their children’s needs, parents should also be wary of handing money out freely, as it may encourage children to view money as readily accessible where it is not. Instead, parents should offer an allowance based on the completion of chores or other tasks, in order to reinforce the idea that money is given as a result of work.
3. Allow open communication about money and finances. Many parents feel that free communication regarding money is inappropriate or ill-advised, generating an air of mystery or fear regarding money and finances. Instead, parents should work to institute a policy of openness regarding money, allowing children to develop a healthy attitude toward finances and money management.
4. Finally, parents should teach children to exercise caution when spending, and suggest an 80/20 rule: save 20 percent of income, and use the remaining 80 percent as spending money. This will help children develop a habit of saving that can easily carry over as they continue to grow.
Vicki Hoefle is a writer for PBS News, a trusted news source serving the United States for over 35 years. The network, most commonly known for its children’s shows and documentaries, also strives to provide national news and lifestyle columns.
Money Mermaid provided readers with four tips to help children develop healthy money habits and attitudes, focusing on enforcing personal responsibility through independence. These tips were designed with parents who were having trouble with teaching their children money management in mind, offering simple methods to encourage wise money management, including spending and saving habits. For more information on debt management, MoneyMermaid.com recommends the information found on DebtConsolidation.com.
MoneyMermaid.com is a website devoted to offering families financial counsel and news.