Teaching our children better financial skills and habits sets the foundation for their future. As we all know, our kids absorb and imitate everything we do as parents, this is why it is so important to set a good example. Some of our actions teach our children some ‘not so great financial habits’, sometimes we do not realise the effects it could have upon our kids.
Waiting till your kids are older
Finances can be a difficult concept to grasp, especially for the mind of a child. Although waiting till they are older is easier, by the age of 10 your kids could have already developed some bad financial habits. A study from the university on Cambridge shows that kids money habits are typically set by the age of 7!
Spoiling your children
One of the most important lessons to teach your kids about money is that you have to work hard for the rewards and not everything is handed to you on a silver platter. When children want something, it is often easier to give in to avoid a tantrum. Standing your ground is for your children’s own good. Teach your kids the difference between a want and a need, teach them about the millions of children who are less fortunate and teach them if they want to buy luxuries they must save for them.
Indulging in daily luxuries
If you splash out on daily lunches, visits to restaurants and buying coffee your kids are probably going to do the same. It is important to teach your kids that indulging is a treat and sticking to a budget is more important. However, it is also important to teach your children to treat themselves every now and then, especially on special occasions.
Complaining about your job
If your children hear you complaining about your job they could develop negative connotations towards working. If your kids believe work is a difficult and exhausting chore it could result in lower career ambition and a negative attitude in the work force! Inspire your children to love their work and follow their passions.
Shopping without a list
This is especially important when visiting the supermarket. Get your children in the habit of creating a shopping list and keeping track of which items they need. A great way to do this is using a white board or fridge list where your kids can write down items as they are needed. Creating shopping lists will teach your children not to spend on unnecessary items and to plan home cooked meals rather than eating out.
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.