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Being a father is not easy. Those who take parenting seriously go as far as changing their behaviors just so the kids have a good role model to look up to. After all, vicarious learning plays a very important role in child development. Psychology tells us that children often imitate their parents’ behaviors, even the behaviors the parent’s aren’t aware the child notices.
One of the most important values that you can impart to your child is responsible money management. Money is an important resource that can make a lot of things work, just as long as it is spent well. If you think that you are not a good money handler yourself, here are tips on how to become one. Remember, the kids are always watching, and they tend to act on your actions more than listen to your words.
Its Earnings minus Savings equals Expenses, not Earnings minus Expenses equals Savings.
People, especially those who just joined the workforce, make this very common mistake of saving only what’s left of their money after they’ve deducted all their expenses. The problem with this is that it makes your savings very unpredictable.
When the amount that you save isn’t predictable, you can’t make informed financial projections. And when there are no clear projections, you end up spending too much on impulse.
Start making it a habit to save a fixed percentage of your total earnings. What remains after that will be the money that you use for your regular expenses. This way, you and your family will learn the value of living well within your means. You will also have enough room for emergencies or unforeseen expenses.
Be able to say what you are saving for.
Old wisdom says that we should save money for the rainy days. This still applies, and this is still good advice. However, your whole savings plan should not just be rainy-day money. Funds for emergencies should just be a portion of it.
Would you like to make a major purchase (an appliance or a piece of furniture, for example) soon? Should the family go on vacation? Is there a business that you’d like to start? There are just too many things that saved money can buy. And it’s not at all bad if you save specifically for them.
Don’t be afraid to avail yourself of loans for urgent expenses.
There are major purchases that just cannot wait. For example, your fridge broke, and buying a new one costs you $400. If you save $80 dollars a month for major purchases, you will have to wait at least five months before you can raise the amount.
Is your family willing to go through five months without a functional fridge? Of course not. So, apply for a loan and plan out the payment schedule well. If you have a bad credit score, you can go for secured loans. Before you make anything final, be sure to iron out all figures and projections by using a reliable title loan calculator.
There are a lot of financially sound actions that you can take as a father. We presented just three here. If your kids are old enough, more than just being a good role model, you might also want to explain to them why you do what you do. That way, they will have a good rationale for the behaviors that they will most likely imitate and bring with them until they become adults themselves.
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