Parents need to give children a balanced view of money

It is important for parents to avoid burdening their children with their own views on money.

According to Rasheed Ogunlaru, life coach and motivational speaker at rasaru.com, children should be offered a balanced view about the benefits and negatives of money, whatever personal outlook parents have.

"From a very early age we pick up all our ideas around money and saving from our parents. So as a parent, it's really important to be mindful about what kind of messages you're giving your children about money," he explained.

While some people will consider money to be the root of all evil and other believe its what makes the world go round, parents need to make sure the views children have are healthy and balanced.

"So I think the key is for parents to encourage their children to be sensible and strategic with their money - [in terms of] planning, budgeting and so on."

Helen Letchfield, co-founder of ParentingforProfessionals.co.uk, echoed this view last month, claiming that parents need to make sure their children are financially aware.

She explained that while it is fine to support them through university and give help when its needed, financial dependence should be avoided so that they can stand on their own two feet.

For this reason, pocket money is a valuable tool as it not only gives young people an awareness of what things cost, but also provides them with experience in saving and budgeting.

Setting up savings accounts for children is also a good idea as it allows parents to put a little bit of money aside each month, with kids able to see the benefits first hand of saving.

These lessons will prove invaluable when children move out and have to cope financially on their own.

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2012-01-24 14:15:38 © Moneyextra.com