Thoughts and ideas about how to deal with home mortgage loans, small loans and personal debts and budgets come from watching parents and other significant people. A newborn child can pick up on family stress caused by financial hardships and stressed budgets. Children as young as 3 years old begin to watch and listen to their caretaker explain to a creditor why the payment hasn't been made this month.
These images form concepts in the young mind. By the time a child is 10 years old he makes decisions based on the concepts formed earlier in life. As he ages decisions will have more impact on his life. Start now to help the young child learn personal budgeting skills to help him have financial freedom later in life.
Consider Your Purchases
This lesson can be accomplished through parents' homeschool program or as a Saturday activity. The process is to sit down with the child and make a plan. The lessons are learned through daily practice and demonstrating the concepts through actions.
Identify the item in the home that is likely to be the families next major purchase. This can be a washing machine, television, refrigerator, or even bedroom suite. If the child is very young or has a disability the program can be adapted to choose a smaller item, such as a toy, that will be more concrete to the child.
In a notebook only used for the financial management projects, write down a plan that discusses how the family will save money for the purchase. Determine if the funds will come from the families entertainment budget, the grocery money, etc. Discuss the impact the removal of the funds will have on each budget. Discuss the total amount the item will costs and illustrate how long it will take to save the money using different values.
Parents can write a list of features that they want in the new item. If it is a toy have the child tell Mum or Dad what color of toy he would like, what it will do, how he will use the toy. If the item is an appliance talk about which features are required and which are optional.
Write down a strategy to determine which style of item will be best for the family's needs. When the family browses sales papers, look in the catalog for different styles, have the child write down information from each source, even television commercials.
Discuss the urgency of the item. Should it be purchased right away? If so, how will this impact other aspects of the budget? Why? Answering these questions will help the child justify the actual need for items he chooses to purchase in the future and distinguish them from "wants."
Financial Freedom from Debt
Beginning with this lesson plan, the child will learn many important aspects that will help him negotiate home mortgage loans, personal debt, make healthy financial decisions, reduce home mortgages and handle life in a less stressful manner. Help children achieve financial freedom by starting now.
Jennifer Terry - Jennifer Terry has worked to promote self-determination and consumer education for 10 years. She has been writing since 2004 and has been ...
