Financial crises can go down from one generation to the next in Canada. However, this chain of recurrent financial constrains running within the family can be cut. If this has to be, there are some technical measures that have to be taken to ensure that financial stability is achieved in a family. This entails money handling skills that the members need to learn. Unfortunately, the poor money management tendencies are passed unconsciously to the children as they grow up. Good news is that you can reverse this by teaching your children the necessary skills of handling money that leads to financial growth. Here are some tips that you can follow.
Experience is the best teacher hence you need to give your children a chance to make a budget. In Canada, the ideal way of handling impulse buying is by making a monthly budget. When making the budget for the month, involve your children in the process. In this case, let your children identify the items needed within that particular month making a list of possible expenditures. Then under your supervision let them eliminate the items that are not urgent with an aim of coming up with a lean budget. In this way you instill in them the necessary skills of being able to identify the essential needs in their lives in order to spend on the exact money they have.
In order to help your children to have a financially stable future in Canada, ensure that they can handle money in the best way possible. You can do this by giving your children an allowance every month for their petty expenditures. For example if they have to pay transport, avoid giving them bus or train fare every day but give them money for several days. You can consider starting with weekly fare and then evaluate with them at the end of the week. In the same way, you can give them money to buy their personal needs for every month. This would help them to be able to keep money with them for the right purpose. Also this assists in teaching them the skills of spending money in the right way thus avoiding tendencies of impulse buying just because they have money in their pocket. This will be reflected in their future life when they will start earning their own money.
Instilling money saving skills in your children is the best gift you can give to them. This is the most important aspect which you can consider introducing after they have learnt how to handle money. You can teach them the ways of saving money by not providing to them some personal needs that are important to them but not essential and let them buy through their savings from the petty cash they receive from you. In this way, you build a culture of saving for a better course. This prepares them for a financially stable future in Canada.
In addition, expose your children to the best ways of borrowing and servicing loans effectively. You can achieve this by involving them in the process of loan borrowing till when the loan is fully settled. Let them identify the best lender for you based on the lowest rates and flexible terms and conditions of the loan. In the same way, let them plan for the payment of the installments from the monthly earnings. This helps your children to be fully prepared for their future life in Canada, thus living a financially stable life. This knowledge can be passed from one generation to the next.