4 key money habits to impact to your children when young

Who we become when we are adults always stems from what we were taught when growing up and especially what we learnt from our parents. As your children grow, they are always observing how you earn, spend, save and invest your money. To ensure that they grow into being financially free individuals, you should start teaching your children the right money habits and attitudes from their tender age. This will result to them being more prudent in personal budgeting and financial planning when they grow up; and avoid the rat race of earning to pay monthly bills without saving and investing for their future. Explained below are 4 key money habits that will help shape your children’s view of money as they grow into adulthood.


  • Be a good role model for your children on financial management


As mentioned above, children learn a lot of habits by observing their parents and picking from them certain behaviors and character traits. Your children watch how you spend your money and pick financial management tips from you as they grow. If you are always out in the malls shopping with them, they will get the impression that you can always spend as much as you want and get anything you want anytime. If you eat out a lot as a family, the children will also pick up the habit and they will never learn the habit of buying groceries and cooking at home in order to save on monthly food costs. To be a good financial role model to your children, teach them how to be frugal and how to spend money on the important things first; so that they learn the art of budgeting and prioritizing their financial obligations.


  • Instill the virtue of delayed gratification in your children


Most parents give in to every request that their children make just because they have the money to buy them the things that they want. However, this creates a perception in the children that they can always have whatever it is that they want whenever they want it without considering the financial implication of the unplanned shopping. Ultimately, the children will grow into being careless spenders who cannot delay their immediate desires in order to save for a bigger goal in the future.

To prevent this bad money habit from developing, you should learn the art of letting your children know that they cannot always pick items in a supermarket that were not part of the shopping list. When they request for gifts and toys, always ensure that before they get them they either work for them or they wait for some special occasion in the future for them to receive them. This will teach your children patience as well as help them to learn the fact that they need to work for and earn whatever gift or toy they get.


  • Teach your children how to save in order to fund their long term goals


Children need to learn from an early age that not all money they earn should be spent immediately. They need to be taught how to save towards acquiring a toy or any other thing that they would like to have. When your children get some pocket money, teach them to save at least one third in a bank account and spend the remaining on important things today. Every month get them their bank account statements to show them how their savings are growing towards the total amount they need to buy a bike, toy or pay for their trip to Disneyland.  This will keep them motivated to save more and after saving towards two or more goals successfully, they will have developed the savings culture that they will carry on into their adulthood.


  • Let your children learn from their mistakes at an early age


If your children want to spend their savings recklessly on some trivial items that they will regret later on, just let them go ahead and do it. After saving for a long period of time and delaying their gratification, they will learn a sad lesson if their savings go into buying toys or other things that breakdown or get finished in  short period of time. They will regret having saved for a long time only to waste the money in short-term items; and this will help them to be more cautious next time when planning how to spend their savings.

In summary, let your children learn from your financial habits as their parent and give them a chance to make and learn from their mistakes early on before they start earning their own money as adults.

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