To offer your child the best education, you may want him to visit outstation. After sending the child, most of the parents are unable to relocate with their children.
As a result, those children need to carry on their expenses on their own. If this is the scenario going on with your child also, then you do not have any other option instead of following some ways.
Most parents are unable to keep track of the financial expenses of their children as they stay abroad. In such a condition, a parent has many more things to do instead of being puzzled.
Before sending his child for higher study to another country, the parents should give him proper financial lessons. Only after that kids can easily keep their expenses under a specific limit.
Being a parent, if you begin to make your child literate about the financial topic at the initial stage, it will hardly matter for him to cope up alone. However, here we will discuss some of those mandatory financial lessons and how to manage the expenses of kids.
3 Important financial lessons a parent should make his kids learn
- Discuss the value of money
If you think that only making your child learn about the denominational value of the money will complete financial literacy, then it is wrong. Instead, the lessons should begin from denominational values. After that, you must make your child learn how much value has increased or decreased as per the Euro. After that, conclude the lessons on how much money he must save and how much he can spend.
- There is no exception of being financially organized.
Make your child learn that there is no exception to being financially organised. If you know how much money you have in your pockets, save it for the latter instead of wasting it. Show him some examples from your life. For instance, you are affording high-class education for your children and how it would have been impossible without money.
- Importance of savings and investment
When your child is about to stay alone in another country, then try to make him understand the importance of savings and investment. After paying all those expenses for studying in college, you may want to give him some extra money for his personal expenses. Before giving him, he was inspired to save money.
It is even better to give the real-life experience of how you have overcome the crisis with the saved fund. However, you may also borrow on benefits if you need a loan today from the direct lenders of the UK. However, make sure your child will not borrow money without any necessity. Only then he will understand the necessity of savings.
How to keep track of your kid’s expenses while staying outstation?
With advanced financial technology, there are ample ways to keep track of your child’s expenditure. Do not worry as you have sent your child to another country for gaining a degree. Some of the finance management tips are,
- Plan a budget
The first and foremost thing that you must do is, planning a budget. After designing a budget, a parent can easily manage the expenses. But while designing the budget, one must remember that it is for their children. So, by analysing all their costs, one must plan the budget.
Parents must ensure that the budget must contain all the expenses such as college fees, tuition fees, study material purchasing fees, stationery item purchasing fees, hostel fees, personal costs etc. After planning all these, inspire your child to keep all those expenses into this barrier.
- Design some heads of expenses
It is important to mention for your child some specific heads of expenses. It helps a kid to bind his expenditure. For instance, after paying the hostel fees and other necessary education-oriented fees, your child will definitely need some money for other purposes.
To track the expense, it is better to mention some necessary heads such as meal expense, entertainment expense, dine out expense etc.
- Install the same application to track the expenses
When your child stays outstation, it is very important to make sure that your child is adhering to the budget. To make sure and to make the process easy, try to take the entire process online. Your child will definitely use a mobile phone where he must install such expense tracking application.
Being a parent, you need to install that same tracker. You may plan the budget even on the tracking application. Now, ask your child to update all those expenses on that application. It will help to track all the costs made by a child.
- Ask your child to upload receipts on that tracker.
When your child stays outstation, it is better to keep him under financial pressure because they are very much impulsive while spending money.
Therefore, it is very important to keep your child under the pressure of showing receipts. If your child is able to deliver receipts, then he will not be able to overspend.
- Give him a debit card.
As your child is not capable of understanding the difference between need and desire so, do not give him the a credit card. Before any occasion like Christmas, if he wants to shop more, fill the savings account and provide a debit card.
To fill the savings account, take help by borrowing Christmas loans in the UK. In this way, you may easily control the expensive habit of your child who stays outstation.