Most of us carry the lessons we learn from our parents about money into adulthood. This means that as a parent you want to build a healthy foundation for your kids. One that balances the line between spending money like it grows on trees and a scarcity mindset. Here are a few good practices.
Be Mindful Of Your Approach To Money
This includes how you talk about money, how much you spend, how much you make, and how you talk about what others spend and make. For example, are you constantly talking about your ‘rich’ coworker who wastes her money eating out for lunch every day? Do you talk about people who have lots of money as though money is a bad thing? Do you talk about ‘poor people’ in a manner that is unintentionally dehumanizing? Or do you talk about how hard it is to make money or how easy it is to make money?
Be Responsible With Your Money
If you live on credit cards and beyond your means, there is a good chance that your kids will do the same. Especially if you speak of your debt as something that stresses you out but do nothing to change your behaviors. Also, talk to your kids about saving and investing money. Not sure how to do either? Maybe it’s time for a financial advisor?
Give Your Kids A Chance To Earn
It is important to teach your kids how to save and budget their money from a young age. This means you must give them opportunities to earn money, even small amounts of money. This could be through chores in which they earn a weekly allowance to babysitting and finding odd jobs around the neighborhood. Many kids even find a way to earn money online. From the money they earn walk them through how to budget for what they want to buy and do and take them to the bank to put some of their money into savings.
Last but not least, but a major area of opportunity for the current generation—learn to say no. Many kids today are accustom to having the latest electronics and gadgets and to getting everything they ask for. Instead, make them save up for some or all of their major purchases.