Starting Early

We all need to do some financial planning to make sure that life goes on smoothly. Most people know the basics of financial planning. Everyone knows that one needs to start saving money as soon as one starts earning. Controlling your spending habits is equally important. Managing and balancing your income and expenditure is the most basic step in financial planning. Learning new ways to increase the returns on your savings and finding new ways to supplement your income are part of advanced planning. It is common to find people with no clue about their finances and they end up depending on others to help them.

Giving pocket money to a child has always been debated and there are pros and cons to it. There are many thoughts and opinions about this issue and it is more or less a personal or a family issue. There are certain factors which can be kept in mind while deciding whether to give pocket money or not. Age of the child is an important factor. At what age should you let a child handle money. There are parents who start with small amounts at a very young age while others wait for a child to reach mid-teens before giving an allowance. How much money should be given also differs from family to family. Parents have to decide the right amount so that it is not so less to seem inconsequential or so much that it loses its value.

There are differing views on giving an allowance to children. Some feel that it should be linked to some chores that should be assigned to the children, while some feel that it should be given with no conditions attached. Whatever the view, if this can somehow inculcate the value of money and handling and planning finances then it is the right thing to do.  Just handing over money is not enough. The parents have to guide and explain to children the different aspects of financial planning like budgeting and investing.

It is also a good idea to introduce the children to new ways they can invest their money or earn better results. Trading online can be a good option for young adults. There are platforms which provide a secure learning environment to the beginners and you can see this here. Introduce them to one such platform BTC Profit, which lets you trade at your own pace. This will, in fact, give them a lot of confidence and they may trade along with their studies and even after they have jobs. This will provide them with a secondary source of income and they will be always thankful to you for introducing them to online trading.