Pester Power : Do your children dictate your personal finance state

Having a child can be the most demanding experience of your life. Physically, mentally and also financially. The physical aspect and the discomfort will usually vanish in a few years, and mentally too you get used to being a parent, but financial demands continue all year long throughout the years.

The trouble is not with the children, who have no idea about the whole situation, but with the parents who fail to educate them. The personality of the child is like wet clay that a parent gets to mould. If you can teach them the importance of finances and budgeting, the financial drain on your is taken care of.

So what aspects do you need to worry about? Here’s a few pertinent situations that do crop up with every one. How do you deal with them?

How to say “No” to your child’s demands

You are in the shop and your kid spots something that he wants. He starts hankering for it and you instantly buy it for him to stop that awful noise. I'm guilty of it myself. This is the worst thing you can do. You need the child to understand that extra buys throw the budget off kilter.

He needs to be told of the list that you are out to shop for and the fact that there's just enough money to cover the list. If he wants something above and beyond, he will have to wait to see if there is any money left after the purchases. Or you could have him do without one of his own items on the list.

Just don't give in because of his creating a tantrum. That sends him the wrong message. It tells him if I just become a pest, my mom or dad will buy me whatever it is that I want. Do you really want that ill behaved child to grow into a monster? Learn to say "No" to your child in a kind way.

How much pocket money is okay

My husband often complains that his mother gave him the same amount of pocket money that she got in school. That it was far less than his needs and he was often embarrassed due to the shortage of funds. One of the main things that you must understand as a parent is that times have changed and money doesn't buy all that it did.

You should ask the parents of your children's friends just how much pocket money they are given. Then give your child money in the same range as long as it does not play havoc with your own budget. In fact it makes sense to stick a little on the lower side with the pocket money, as you are bound to buy them more things in any case.

How often should you buy an expensive toy

As parents we want to give our children the very best of everything, but is it really necessary to buy the most expensive version of every toy on the market? No it is not, and very often the cheaper version will do just fine. Make sure that the toys are not unsafe or dangerous for kids, but other than that don't go overboard.

Experiment with home made toys. I wrote a hub about them as well. They are inexpensive, test your child's creative spirit and can be a great way to spend quality time together. So remember that a special occasion like a birthday may justify one expensive toy, but don't make it a monthly habit that will kill your budget.

Teaching the child the importance of budgeting

I've been talking a lot about having a budget. I do hope you know how to make one! The next step is to teach your child how to make one and follow it. For any child buying is impulsive. So you need to teach them about how you save money to buy something expensive at a later date.

As a child I wanted a pair of skates, and my parents told me to save my monthly pocket money till I had enough to buy them. It was the ten most difficult months of waiting but the final reward was fabulous. I will never forget that feeling. That's how I learnt to be responsible for my own finances. I no longer have the skates, but I still have the lesson.