As parents, our number one goal is to raise children with good manners and stellar ethics. We strive to pass on the importance of hard work, accountability, and discipline to our children. We want to encourage the best behaviors so that they find their passion and enjoy a full and happy life.
Unfortunately, we can’t do this if we are regularly indulging them in life’s pleasures without teaching them the discipline that is needed to achieve financial stability and success. So stop pampering and start teaching the value of hard work and how to manage money. Below are some simple steps to start taking today.
Model Good Financial Behaviors
Lead by example, children are more likely to mimic what you do then do what you say. Demonstrating a positive relationship with money is a great way to teach your kids.
Start the talk
Kids learn through repetition; have regular discussions and turn everyday topics into teaching exercises to demonstrate how money affects your lives. Doing so will help you take an active role in teaching your children about finances.
The value of hard work
Working towards an education or a job promotion increases one’s value, it also provides a healthy dose of self-esteem and life satisfaction. Encourage your children to be the best that they can be; it will instill a strong confidence and help them persevere the challenges life puts before them.
The value of earning
When one works for their own money they are less likely to become frivolous spenders. Teach this lesson by giving your children age-appropriate household chores that earn money.
The value of saving
Explain the difference between making wise purchases, one that adds value to their life vs. unnecessary purchases that add little to no value. Show them how quickly their piggy bank fills up when they save or better yet open a bank account and show them how the numbers grow!
Living within one’s means
Knowing how to have a healthy cash flow is key. Help them understand how much money goes comes in and how much money is available to go out. Impress upon the need to set aside a certain percentage of savings. When we live within our means, we can avoid unnecessary debt. A great lesson to live by for all ages: “Don’t spend what you don’t have.”
Money is something we must deal with throughout life, and financial literacy is an important skill for parents to teach their children. Helping your children develop strong skills early will give them the tools they need to deal with real-life financial decisions and help propel them into a healthy financial future.