Teaching your kids about money is an extremely valuable lesson in life. Not only will this help them in the future, but it will also determine what behaviors they adapt towards money in their life. If you don’t teach them about money, someone else definitely will and you never know which type of lesson your children are going to receive. For instance, if you are a parent that saves a lot of money you are probably teaching your child that money should be saved and you are setting an example of how to handle money.The main point here is that the way that you handle money and the way that you talk to your kids about money is most likely going to determine how they deal with money in the future. Here are some valuable lessons but you should definitely teach your kids at a young age regarding money.
1.Teach them about the importance of savings
It is very important that kids learn at a young age the importance of saving money. There are numerous ways on how you can build these important habits in them such as buying them a piggy bank, and teaching them how to put money in and save it for something later. It is important that you teach your kids that money can buy something at the moment but when they save up for later they can buy something even better.
There is a very clear example when it comes to saving money, for instance giving a kid a dollar and telling them that they can buy one piece of candy with it, however if they save it and they add $2 they can buy three pieces of candy with that. Have them understand the difference of saving money to buy more, and also to not shop in an impulsive manner.
2.Show them the cost of money
Some kids lack the understanding of what something really costs. This means that even if they have money they don’t understand how valuable something is. For that reason make them do chores and have them earn money. The more they work for it, the more that they are going to understand the value of something. For instance if they spent the whole day doing chores, and they are rewarded with a payment, they’re going to value that money because it was earned with effort.
3.Give commissions, not allowances
This point is very similar to showing the kids the value of money. While some parents are very used to the idea of giving an allowance, this means giving your children money without an effort behind that money. What you want to do is give a commission, give them money based on effort and not just give it away without a cause. This is definitely going to teach your children that money is earned and not just given freely. They’re going to understand that in order to get money they need to work hard for it and earn it.
Washington Senate Bill Requirements
The Washington Senate Bill 5315 requires captives using insurance risks in Washington to do the following;
- Pay a $2500 registration fee.
- Get certified by the Office of the Insurer Commissioner
- Pay a 2% annual premium tax for all premiums channeled to Washington risks from every 1st of March
- Pay a 2% tax for all policies from January 2011 to 31st December 2020.