Are you financially responsible?

There are some people that have no problem creating and sticking to a budget but there are a lot of people that struggle to live on a budget. If you are not financially responsible, it is time to change your ways before you are forced to move in with your parents or with your own children. Being financially responsible will help you with your financial goals in the future and it will give you something to retire on along with some money to enjoy your life. If you aren't financially responsible now it can end up digging a huge hole into your finances that you are unable to ever get ahead.

Financial responsibility is taught and it is a learned behavior. Children that see their parents reckless spending are likely to follow down the same path. People can also follow down a path of reckless spending if they are not taught the value of a dollar. It is important that parents take the time to educate their children financial responsibility so that they don't end up with high amounts of credit card debt and multiple personal or student loans.

As parents it is important to teach our children how to save their money and to spend thrift. If you are able to teach your children these important habits they are less likely to waste money and they will be able to save their money for a rainy day. As your children are younger, have them help you with grocery shopping and teach them to look at prices when they are buying. This is a great way for them to see the difference in the value of a dollar and how saving money here and there can go a long way. As your children move into their teenage years you then need to teach them money management skills that pertain to earning and saving money.

Parents need to teach their children how to work and it is a wise idea to encourage your teen to get a job, even if it is a summer job that they can use to earn money to pay for their entertainment needs. Teach them how to save a certain percentage and then what percentage will go toward their entertainment needs, cell phone, car needs, and future college expenses. Teaching your child smart spending habits is the best way to put them on track for the future so they understand the pros and cons of loans along with how to have money sufficient for their needs. The other nice thing is that when you teach your teen how to work, they will know how to make money when they are in college and they might be able to get out of college without student loans as these loans can cripple their finances for years.

Now let's talk to the adults out there that need a little financial help. If you are struggling to get by each month and you are living paycheck to paycheck, take a good look at where your money is going. Start by creating a budget and tracking all of your expenses. This helps you to see where you are wasting money and it also helps you to see if you are saving enough money in the event that you lose your job. Some people struggle financially but they still contribute to their children's perpetual education fund and other things like this. While you need to contribute to your retirement it is important to ask yourself if you should continue contributing to certain accounts like your children's educational fund. The thing with this decision is that your children may be able to qualify for grants or scholarship funds so you don't need to save for them. The other thing is that you need to ask yourself if your children would appreciate their parents having financial control and not needing to move into an apartment or in with their grandparents or if they want you to keep contributing to their educational fund that they might not even need.