How can you grow in your children healthy attitudes towards finances? It is always best to start them young. But how do you start? What principles do you teach? How do you get them to understand?

Here are three principles that are applicable both to you as a dad and to the children.

Father-Child Communication about Finances

1. Teach by example. Demonstrate that you are willing to put aside indulgences and personal wants in order to meet the needs of the family and others. As a dad, you are a role model for the children. They are observing your life priorities as expressed in your giving and expenditure.

2. Live on a budget. No matter what the family income is, a budget is needed. Begin at an early age, teaching your children how to manage their money and how to divide the amount into different parts.

3. Exercise self-control. There's no way you can establish financial discipline in your children if you are not disciplined. Share about the family budget with the children and show them how you save money to buy clothes or repair the car. Practice moderation, regardless of the ability to generate income.

General Training

1. Stick to the basics. The family is a community; everyone in the family gets to share in the opportunities, responsibilities, rewards, and income of that community. And, as part of the family community, it is important that children learn to be responsible for certain household duties for which they are not paid. These could include cleaning their rooms, doing dishes, and picking up toys.

2. Give an allowance. To learn the value of money, children need to have an income that can come in the form of an allowance—something common in most households. Allowances should be given with no strings attached and not tied to work-for-pay projects.

It should be large enough that the children look forward to receiving it, but not so large that it takes care of all wants and needs. They should learn how to save for the things they want. Just as adults receive a pay-raise at work, children also should receive allowance raises.

3. Pay for jobs. In addition to allowances, you can also provide paying jobs for the children such as pruning the plants, bringing out the garbage to the rubbish chute, mowing the lawn, washing the car, washing the windows in the house, and weeding the garden. Children should be paid equitably according to what you are able to afford and according to some simple rules:

• Pay children only for jobs completed. Pay only when all the work has been completed as agreed so that children learn the value of being paid for work done. Pay also to reward exceptional or extra (more than what was agreed upon) work with bonuses.

• Pay for quality work. This helps children understand that they will be paid for work well done. This does not mean that they have to do things perfectly; but it does mean they need to do the best they can do, and take pride in their accomplishments.

• Pay fairly within the family budget. Pay your children a fair wage but do not be excessive. Paying children too much for work will possibly cause a distorted value system that will remain with them as they get older.

• Encourage sharing. Teach your children to set aside a portion of their wages to give the poor and to other worthy causes.

• Encourage saving. Children who learn how to save for the things they want, will as adults be more inclined to save for wants, rather than going into debt to get them.

Govern Spending Habits

Establish some ground rules that will serve to govern how much money your children will receive and how they are allowed to spend it. Children should learn to think hard about spending choices, but their mistakes should never be over-emphasised. Be sure to lavish praise when praise is due.

With regard to financial management, your goals are to slowly develop financial discipline and wisdom in the children. It doesn't happen overnight; but with consistency, the seeds of responsibility that you sow will eventually take root in the lives of the children, and will yield results in their future financial dealings.

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About the Author: The Dads for Life Resource Team comprises local content writers and experts, including psychologists, counsellors, educators and social service professionals, dedicated to developing useful resources for dads.

Also read Dads-of-Pre-teens: Children and Finances