Creating a Financial Plan
Creating a financial plan will help kids take the road to financial responsibility. If they don’t know where they are going, it is unlikely they will ever get there. You can help provide the necessary guiding light so that your child can follow her own path to financial freedom.
Your child will need hands on assistance with her financial plan. A financial road map for young children will be much simpler and easier to obtain than those for older children. It will be important to work together with your child to create a financial plan that is realistic, sets a time frame, and can be achieved by your child. Early on, you will need to closely monitor his progress as he makes money, sets goals, saves money, and spends it. As you becomes more comfortable with the process you can provide more independence.
Keep in mind that you will need to give a little extra inspiration during times when your child falters. No one is perfect and it is common to fall back a few steps before moving forward again. Fostering a family atmosphere of open communication where you can serve as a role model will increase your child’s opportunities for success and help you sail through the rough spots.