You Might Be Setting Up Your Kids For Future Bankruptcy..

My son was an only child for his first eight years.

When he turned about seven, we realized we were doing all the wrong things as far as teaching him the value of money.

He got a treat everytime we shopped, had no chores around the house, had no idea how hard it was for his parents to earn the money that he was so eagerly spending.

We realized we could be setting him up for some huge reality checks and a difficult road as an adult if we didn't teach him some skills.
He had no idea and if we didn't change that, he'd very likely not do very well with his finances as an adult.

We started to change our behaviour at around this same time to try to become more financially responsible ourselves.

We stopped buying constant treats for him and started him on an allowance.
He needed to earn his money for treats and toys if it wasn't a holiday.

Just like a job, we had bonuses and we also had penalties for him and he learned that he had to manage his money.

He now has a savings account and is not allowed to take out more than 50% of his savings.

He must tithe 10%.

He also must put a percentage of every new bit of earnings into savings.

We hope we're preparing him for financial responsibility in the future so he doesn't have to learn the hard way about bankruptcy, credit counselling or consolidation loans.

I am sad to say that it took some big mistakes on my part to realize that credit can be a very negative thing in your life.
Borrowing from Peter to pay Paul is not the way to go and our children will very likely model our financial behaviour.

More financial advice:
'Get off the Treadmill'
Live Better with Less $$

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