Debt Management &
Raising Money-Wise Children

As debt is becoming more and more a part of our culture, it's worthwhile teaching your children strategies for money management and solutions to a life of debt.

Costly lessons

In school, we are taught how to add up, subtract and divide. We are even taught about economic theories, but are we taught how to responsibly handle money? Teaching children how to budget and control their spending could be the solution to future debt management. If children recognise they can't always get what they want and take responsibility for their own finances - even if it is just weekly pocket money - this could be one of the best lessons in their life.

Parent power

The parent's attitude to spending money will be picked up by their child. If a parent gives in to every demand for new toys, designer clothes or endless sweets, then children will learn to give in to their spending impulses. If an adult has a blas attitude to their debt management, or isn't looking for a solution to their financial troubles, then children could grow up thinking money does grow on trees!

Can't buy me love

The Beatles coined it with their hit, Can't Buy Me Love. One mistake parents can make is to think that lavishing money on their children is a way to prove their love. Often parents brought up in harder times want to give their children the things they never had. Confusing spending money on a loved one with the idea that monetary value is proof of your love is dangerous. If you associate spending with emotion, you could soon be looking for a debt management solution.

Live within your means

One of the key strategies in finding a solution to debt is the management of your child's expectations. If a child expects to get what he or she wants, they could take this attitude into adulthood. By setting limits and boundaries, and saying no to their whims, they will learn that they can't always get what they want in life and learn how to overcome those disappointments.

Avoid peer pressure

Trying to keep up with the neighbours or buying the latest fads can get you into debt. All families have limits. The solution is to say 'No', and stick to your guns.

Pocket money

As your child grows up, let them take more responsibility for things such a buying birthday presents or saving up for that drum kit they have always dreamed of. Set up a savings account. Saving money is one way of showing that if you want something, you have to wait till you can afford it. In these days of instant credit, teaching children to be money wise is perhaps the best way forward for future generations to find a suitable debt management solution.

For advice on which debt management solution is right for you, visit MRA Debt Help at www.mradebthelp.co.uk or call 0800 612 92 23.

For independent financial advice, visit our sister company, Mike Robertson Associates, at www.mraltd.com. You can email an independent financial adviser for professional help, or call 0870 803 1995.