The Best Ways to Help Your Children Out Financially
If you have children then you will obviously want to do everything that you can to help them. When it comes to finances, this is no exception. It is every parent’s wish that their children are happy and so if they are struggling financially, then this can make parents unhappy as well. Fortunately, there are lots of things that parents can do to help their children and they do not all involve giving them money. Many parents do not have money to give to their children, so it is good to know that there are other solutions that could help them.
- Set a good example – children learn a lot by following their parent’s example and so if parents make sure that they are setting a good example then this will rub off on their children. This can include things like making sure bills are paid on time ensuring you always live within your means, making sure there is enough money to cover all of the essentials. There may be times when this is not possible, but if this is the case make sure that you get the children involved by explaining to them why things are difficult and what you are going to do to reverse that situation. You could have made a mistake by not budgeting properly or something like that and if this is the case tell them about it so that they learn form your mistake.
- Give them advice – sometimes children want to be independent and are not interested in the advice that parents give them. However, this is no reason not to give them any. The things you say will rub off on them and even if they do not want to hear it they may just sink in. Hopefully they will be interested in what you have to say. You do need to make sure though that you are not judgemental as that will turn them away from what you are saying but just try to be understanding but helpful as well. You may have been in the situation as well and so might be able to explain how you managed it. Make sure that they know that you will always be there to help them out if they are making financial decisions or need help.
- Be a guarantor – there are some loans where someone can borrow even if they have a poor credit record as long as they have a guarantor. This can be something that a aren’t might do for their child. What happens is that if the child cannot cover a repayment then the guarantor will pay it instead. Some parents like to help with this if they cannot afford to lend them the money themselves and would like to allow the child to have the money that the need to buy things. It is worth noting though that this type of loan can be expensive compared with other types of lending and so financially they might be better off trying for a different type of loan altogether, if that is an option for them. There are other situations where a parent could be a guarantor as well which could be useful, such as when their child rents a house for the first time and perhaps has not been in a job for long and so does not have a good credit record. This can really help the child to start to build up a good credit score as they have a chance to prove that they can manage financially, assuming of course, that they are able to manage.
- Lend them money – some parents choose to lend money to their children to help them out. They might let them have it interest free or at a very low interest rate and have flexible repayment terms. This can feel great, as a parent, because if you cannot afford to give them the money as you need it for the future, it means that you can help them out just for a while. However, you do need to be careful as it could cause jealousy from other siblings and it could mean that there is trouble caused in their relationships with each other and yours with them. Some parents might just prefer to give their children money to help them out and perhaps try to make it fair by giving each child the same amount. This should help get around any jealousy problems but it could still not be the best solution. This is because if your children get to rely on you helping them out when they get into financial trouble, they may not try hard to stay out of trouble, but feel that it will be okay to not budget carefully or save up because they can ask you whenever they need financial help.