Teaching your children how to develop healthy financial habits can be tricky, especially when talking about money has been deemed “taboo” by society. However, showing your children good ways to handle their finances will set them on a path for success in the future- and more and more people are starting to agree. There has been a major increase in recent years of conversations about finances taking place between parents and their children. And the results are in- it’s working!
It can be as simple as starting with a piggy bank. A piggy bank can teach a young child the concept of “saving up” their money. Whether it is $10 or $100, it should be acknowledged that saving is an accomplishment. The filling and emptying of the piggy bank should be a positive experience for you both! No matter how young, this will help slowly instill the positive habit of being responsible with money as they get older.
As your child grows, the level of responsibility they hold should also grow accordingly. As they surpass the “piggy bank” stage, bring your child to the bank to open a true savings account for them. Financial responsibility, with the correct outlook, can be an exciting thing! Teaching your child the importance of good saving and spending habits will put them on track to have a healthier relationship with money in the future.
Before you know it, your child’s purchases will go from candy to a car, so the goal is to create healthy habits now. We suggest you lead by example! Teach them good habits of saving, spending, and eventually investing. The goal overtime is to have your child be able to identify their own personal financial goals and what they need to do in order to achieve them. No matter how insignificant it may seem at times, these habits being instilled will eventually dictate how they make financial decisions as an adult.
Children should be confident in their ability to understand finances and have a good basis of healthy financial habits. They will eventually thank you for taking the time to teach these important lessons; and if you’re lucky, you may even be told “you were right.” We wish you good luck!