The cloud of financial uncertainties in the last 5 years had twin effects on parents. Firstly, they have become more concerned about their kids' financial future. Secondly, they are more interested to go for one-child family.
Being a parent is not a joke. Parents have to take the responsibility of overall development of their children. The rising living costs, education expenses and the weak economy have made parents wary of having more than one child. In the last few decades, the percentage of women (in the age group of 40 and 44) giving birth to only child has increased rapidly. According to the latest report of U.S Census Bureau data, the figure has increased from 10% in 1976 to 19% in 2010.
Recession and slow recovery rate had always made a direct impact upon the nation's fertility rate. Couples postpone their plan to have kids till the economy becomes better again. No one knows when the nation's economy will finally become normal again. So, nobody has any idea when couples will have enough confidence to have as many kids as they want.
Recently Citi Consumer Banking employees conducted a survey amongst 1500 parents. The result of the survey highlighted the following facts:
Worrying would not help to achieve anything. Parents have understood this fact very well. As such they have started giving money lessons to their adorable kids. Almost 9 out of 10 parents involve children into various kids of financial education activities nowadays. They're coming out of their shell and discussing family financial issues in front of their children. Some are even taking their kids to banks to give them a practical experience.
Honestly speaking, on the personal financial side, parents should have a goal to find a great career for their children. More importantly, they should always strive to make their kids financially responsible citizens of the country.
Here are some tips that may help parents to make their children better money managers than themselves.
Don't hesitate simply because your children are small. Teach saving tips to your kids. Share your secret shopping tricks with them. Once they are little older, make them understand the value of emergency fund.
Ask your kids to consider the following factors when making college decisions:
Finally, try to be less tensed about your kids' financial future. Don't fear that your kids will make mistakes for sure. Instead of getting worried, help your children to walk on the right financial path. Teach your kids to ask 3 questions to themselves before making any financial decision. These 3 questions are:
The answers of these questions will help your children manage finances wisely. They can improve the quality of their lifestyle without breaking bank.