In this day and age, many young people are spreading their wings and taking on life in their stride. The problem is, they haven’t been taught sufficient information about how to handle their money and this can quickly escalate into getting themselves into trouble with their finances. Also, the prices of further education are now at an all time high, so anyone that’s trying to better themselves for a better career status are being hit with large bills that are hard to pay off. It’s an awful thought that one day your child could be in that position, so take a look at these money skills all parents should teach their children to avoid debt problems, so that your child can learn useful money handling skills sooner rather than later.
What to do if you do get into debt
Sometimes, no matter how hard you try, you can still end up owing money to one place or another. It’s important to know how to deal with your debt issues and which companies to turn to for help. Big names like National Debt Advice can help sort out debt management plans for people that are in debt, and actually take into consideration the rest of your outgoings so that you don’t fall short again.
How to keep on top of your finances
When you take your first steps into the big bad world you will likely be thrown a ton of different things to pay for. Things like rent, car insurance, fuel, food, electric, gas and water are all the basics of living on your own. Teach your children how to keep on top of these payments so that they don’t run the risk of falling behind and owing money. A great way to do this in this day and age with technology is by using bill tracking apps to alert, calculate, and remind you of upcoming bills. If you enter your income as well, some apps will even budget food and luxury allowances too!
What to keep an eye out for
It’s important to be wary of changes in your financial status. Sometimes, small things can happen to you that will affect you in a bad way financially. Simple things like a late payment on a bill will show in your credit report, which could affect your chances of being approved for loans or mortgages when it matters the most. Keep an eye on your credit report on a regular basis to ensure you’re not falling behind and also for tips on how to improve your credit score too!
Little tricks on saving money
Finally, it’s always a good idea to teach them some good old fashioned tricks on how to save money so that they are able to treat themselves, and even have some stashed away for a rainy day. Check out these ideas:
- Save a percentage of your paycheck – it mounts up sooner than you think.
- Clip and collect coupons for money off groceries and essential appliance – or even for fun days out!
- Think long and hard about big purchases. More often than not, people decide against the purchase for now.
Use these money skills to teach your children so that when it’s their turn to leave the nest, they don’t crash and burn into a mountain of debt!