If you are facing the unsettling reality that you are in serious debt and are considering bankruptcy, one of the first steps you should take is to identify which behaviors related to money management ultimately led you to this position. With a family to care for in Virginia, another concern of yours may be how to teach your children effective practices for managing their own money so you can help them avoid being in your position in their future.
It is never too early to begin talking with your children about debt, budgeting, responsibly spending and planning for their future from a financial perspective. Additionally, with your example, your children can witness firsthand how to take care of their finances so they will not compromise stability and their ability to provide for their needs.
According to Parents, two practices that you may consider teaching your children include the following:
- How to budget: Sit down with your children and show them how to make a simplified budget. Teach them how to split their earnings between needs, wants and savings for a rainy day. Remind them to cover their needs first, put a percentage aside for their future or for emergencies, and to keep the rest for things they may be saving for.
- How to have self-control: Even though your children may want to spend money as soon as they get it, teach them the invaluable skills of patience and self-control. Teach them how to compare their options when purchasing products and services and how this practice can save them money. This lesson may help them to avoid the urge to impulse buy things they do not need.
The information in this article is intended for educational purposes only and should not be taken as legal advice.