Now that you have made a few decisions on the amount of money you can place into budget for your children and why you are going to give your children money, it’s time for you to sit down with your spouse and discuss your children’s future financial goals. You are going to need to need to make these decisions with your children or with your spouse depending on the age. As parents we often stress about what the future is going to hold for our children. Will we be able to buy them their first beat up car? How much will we be able to help them with their college fund? Are we going to be able to afford a wedding or honeymoon for them? Will we even be able to help a little?
Our goal with this mini challenge is to help our children learn to work hard, sacrifice, and live DEBT FREE ~ which all goes back to the Biblical way God wants us to live our life with money. So now it’s time to look at those questions and figure out the answers in a Biblical light.
Step 1: First, let’s look at a car. We could go out and finance a car allowing our child to make payments, or ourselves making payments. But is this really teaching our children to work hard, sacrifice, and live debt free? NO! So here’s a solution. Tell your child that when it’s time to purchase a car you will match how much they have saved, so if they have saved $8K, you will match that $8K. Now before you panic on me thinking what if I don’t have $8K, I can tell you that you will if you continue to follow this plan. I will explain how later! So if your child has saved up $8K and you give them $8K that’s $16K they will have for a car! If they save up $1K you give them $1K and that’s $2K they have saved up!!
What about their college? You can do the same with that. When they get to their teenage years they are going to look at going out with their friends and spending $20 as that’s $40 towards getting a car! Their wedding, honeymoon, moving out, ect. It doesn’t have to be I will match you, it could be I will give you $100 for every $1K you save, or $20 for every $60 you save. Whatever you feel comfortable with. Let’s take some stress off of our future finances and teach our children early how to gain control of their finances! Personally I want to take my children anywhere in the world that they would like to go for their 16th birthday. Now my children are 8 (turning 9 in Nov.), 7, & 6 right now so I have time to save for this, but that is my goal. Well, they know this desire I have and they want this more than a sweet 16th party. They will need an envelope for their saving for this trip because they will want to buy souvenirs and other things when we are there.
Step 2: Get an envelope and label it for each long-term future goal.
Our goal for our children is for them to never have a credit card. We will teach them to live within and under their means. The credit card that they will have will be a secured one.
Created for the Gift of the Home Group by Jennifer Cangiamila
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