Seven financial parenting tips for your kids for this summer...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  reachyourviews@gmail.com)

Summer holidays provide a great opportunity for the parents and the kids to spend lot of time together and share many things. @home, @vacation.. It's also the time you should act as a responsible financial parent and teach them the basics of money, money management and values of life. 

Here are seven tips for becoming a responsible financial parent which can be considered for this summer:

1. Open a savings bank account for your kid and inculcate the habit of saving:

Open them a bank account and get them familiarized with the financial activities. That's how they get to know how important is handling the money. It also gives them a sense of pride of having a bank account @ an young age which itself could be a good sign of financial responsibility. More than anything else, teaches them the importance of independence...


2. Give them a budget to spend during this summer:

Assign them a budget to be spent this summer. This sends lot of messages. One, they know what is being spent and how is it being spent. Two, that the money is not easy and should not be taken for granted. Three, they adjust to spend within the allocated budget. Budgeting can also be brought into their daily/weekly allowances.


3. Make them achieve a target and reward them too: 
 

Give them reasonable and attainable targets for doing things and reward them with cash prizes (and of course do deposit the cash into their bank account :-) . Targets could be on their summer studies, summer activities etc. 

Messages are two in this: One, they develop the competitive spirit @ early stages. Two, money comes as a reward and not as a free gift.



4. Say No to "One" habit of theirs which has a financial implication:

This summer can be a good opportunity to knock off one unwanted habit of your kid which has a financial implication. It could be a food habit or a wasteful entertainment expenditure or anything which bothers you for sometime. Act now; say no to that habit; and reward yourself too after the success...



5. Invest on them to acquire a new skill:

Future is about the skills we acquire now. Encourage your kids to take up learning a new skill which can be career oriented and beneficial @ a later stage. A foreign language can be a good example. But any skill which can add value to their future.

6. Teach them that "Money isn't everything":

As mentioned earlier, summer is the time you get a lot of time to be with the kids. And that's the time you can share with them the values of life., mainly "MONEY ISN'T EVERYTHING"... 

Use story telling and your own experiences with them to emphasize that there is a life beyond money. 

Remember, money and wealth you leave behind for them may get over after a point. But the values you leave behind for them go on for generations.... Think about it.

7. Plan for their future and tell them too:

Plan for their future RIGHT NOW!

Make a financial plan for securing their future by doing the following things:

a. Make sure you have enough and more life insurance cover for your family's benefit. It's a paramount security for your family.
b. Make a regular saving for their future which can grow as a big corpus @ a later stage.
c. Make separate plans for their college education, post graduation, foreign education and marriage expenses.

Most importantly, broadly share with your kids of the plans you have made for them. It's to let them know that you are responsible and meticulous about their future. Now the onus is on them to reciprocate... 

Do speak to the experts @ Money Avenues to secure your kids' financial future...

(The author is a financial planning coach. Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Mail at:  reachyourviews@gmail.com)

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