I have seen many people holding high positions in well established organization get into financially difficulties. From what I noticed, one of the major reasons for getting into these financial difficulties is the failure to plan and manage their finances efficiently. Some of them still don’t realize what went wrong till their retirement age.

It is appalling that when you have been working non stop working throughout your life span and never seem to get rid of your financial difficulties. Not many people realize the important of personal budgeting and financial planning.

A lot of people misunderstood that personal budgeting and financial planning only start or necessary when you are older or in later phase of your life.

Experts said that personal budgeting and financial planning should young. Teaching children and teens on how to budget their spending can prove valuable in the long term. At this age, their finances are simple. Therefore, learning and picking money management skills is easier. When you have a good foundation, you will be able to manage more complex finances which will come later part of your life.

Let the kids manage their own bank accounts. Teach them how to track their spending and do some simple budgeting. Tell them how important is it to set your own personal budgeting and keeping to it. Here are tips of how you can do it:

1. Start by teaching them how to identify different bills, coins and their values.

2. Teach them how to count money and make change.

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3. Have them accompany you to the store and get them to pay the cashier and count change.

4. Give them a fixed allowance for a fixed period. Ask them to manage the allowance themselves.

5. Teach them how to prioritize and save money for what they want to buy.

6. When you preparing family budgeting, get them to participate.

7. Encourage them to set individual budgets for everything they spend.

During adolescent years,

8. Teach them basic banking skills, such as opening account, making deposits and withdrawals.

9. Work with them to create a basic budget that includes leisure activities, clothes, music, etc.