If you talk to an Overland Park CPA about the latest financial trends, they will probably tell you about the impact of Covid-19. The pandemic has forced many people to re-examine their lives and how they spend and manage their money habits. Some people are out of work and have to buckle down and cut any unnecessary spending. Others have simply changed how they are spending money, such as eating at home more often. Regardless of your situation, this time in history has undoubtedly changed the way our finances operate.
This is an excellent opportunity as a parent or grandparent to teach your kids about the value of a dollar—things like earning, saving, and spending habits can all affect children into their adult lives. When you teach a child young, these habits tend to stay with them, and they are more likely to be more financially responsible as adults. With the help of an Overland Park CPA from Pro 31 (located in Louisburg), we can help you come up with an effective financial plan to keep you afloat during hard times. We can also show you a few things on how to plan for the future if the economy is thriving.
According to Overland Park CPAs, one way to help your children start the idea of managing a budget or money is to allow them to earn a few dollars. This can be done by giving them an allowance. The process of financial responsibility can be difficult and it’s not easy to know where to start. It might take some trial and error to figure out what financial tasks a child is able to do. Although this greatly depends on the individual family and child, there are some basic guidelines for children’s expectations by age according to the Kiplinger.
Younger children usually between the ages of kindergarten to third grade can handle tasks such as:
- Putting their clothes away in the correct drawers
- Shoveling snow, picking weeds, watering plants
- Taking out the trash and/or recycling
- Dusting non-breakable surfaces
- Helping clean up after dinner
Older children can handle more complicated tasks such as:
- Mowing the Lawn
- Washing dishes, unloading or reloading the dishwasher
- Sweeping or mopping floors
- Sweeping out the garage or walkways
- Cooking a meal for the family or meal prep
Overland Park CPAs know that every family is different when it comes to the way they pay out money for these tasks. Some families pay once a task is complete, while others provide a weekly list that must be complete in order to get a weekly allowance. Regardless of pay schedule, allowing your children to do basic household tasks to earn money can help them learn responsible saving and spending habits that they will use in the future. One example might be to expect them to save 25% of their income. So, if your child gets $10 a week allowance, tell them to put $2.50 into a savings piggy bank, and the rest can go into their wallet.
For older children, adding an extra layer or being responsible for one bill (such as their cell phone or car insurance) will teach them the value of earning and saving, while also showing them that paying bills is a regular part of life. When they go to college, they will be prepared to manage a budget and less likely to fall into the freshman pitfall of overspending. Making a plan with an accounting firm in Overland Park can help your kids and family plan for the college years where their expenses really seem to add up.
Teaching children and even grandchildren how to be responsible with money is a great lifelong skill. At Pro 31, an accounting firm in Overland Park (located just 20 minutes south of Overland Park in Louisburg), we understand the importance of lifelong financial planning. We have great ideas on how you can map out your future along with the future of your children and grandchildren. Give our Louisburg office a call at (913) 837-3131 or contact us online for a free quote. We can help your company by letting your work closely with a small business accountant in Overland Park or we can assist with individual finance services such as tax return preparations in Overland Park. Our office is located in Louisburg, just a short 20-minute drive from Overland Park, and we would love the opportunity to assist you with your tax and accounting needs.