Everyone makes money mistakes. It’s part of life. However, helping your kids recognize potential potholes on the road to smart money management is a great place to start! And setting a good example is a way to teach a healthy respect for money over time.
Set an Example
Avoid the Pitfalls
|Teach the Value: Teach your kids that money isn’t “free.” You have to work for it, and thus, are working for the things you purchase.||Pay It Back: Get your kids used to paying back what they borrow early! By expecting them to return the “loan,” you’ll reinforce that money isn’t free. The same works in reverse. If you borrow money from your kids, pay them back – with interest.|
|Talk About It: Speak openly about money withyour kids. You don’t have to go into all the details of your family finances, but talking about how money works and how to use it wisely will go a long way.||Teach Them Perspective: If you notice your kids aren’t willing to part with their money for anything (i.e. buying gifts or charity), explain that money itself isn’t valuable – it simply allows us to purchase the things we want or need.|
|Model Good Behavior: Pay yourself first. Overall personal savings in the U.S. is currently a very low 4%. If you want your kids to save, they’ve got to see you doing it too! (Source: www.bea.gov, May 30, 2014)||Keep Track of It: Children should never have more cash on them than they need. It’s irreplaceable if lost or stolen. Try doling out allowances or other funds in smaller amounts, more frequently. Or set up a bank savings account to help them keep better track of their cash!|
When you know more about money, it’s only right to pay that knowledge forward. Sharing your know-how with your children is a great way to ensure that they can avoid the money issues that keep so many people from living the lives of their dreams.
This entry was posted on Monday, July 14th, 2014 at 5:16 pm and is filed under Primerica. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.