Comments Off on Habits to Avoid When Teaching Kids Financial Responsibility
Financial responsibility is one virtue that you can teach your kids so that they grow up as skilled financial managers. Being responsible with money is something that they can learn at a young age, and there is no excuse not to expose them to a very “grown up” thing. However, there are habits that you need to avoid so that your children will not misunderstand you. The primary step is to set a good example of being financially responsible. This is further specified into the following principles:
- Avoid fighting about money. According to a study in 2012, children who heard their parents fighting about money grew up to have financial issues and are more likely to be buried in huge piles of debt. Intense conversations about money will never make everyone in the family at ease. Instead, you can keep it low-key by conducting a “budget talk” where you and your husband or relative discuss expenditures in a positive light. Apply the problem-solution approach and avoid blaming one another.
- Avoid spoiling your kids when they want to buy stuff. Teach them to save for what they want, yet emphasize what they need to prioritize when buying. For instance, they may be able to save a few dollars to buy candy, but you can teach them to use it on a more important thing (i.e. books).
- The topic of money shouldn’t be a taboo. You can discuss this even with the children around, but avoid quarreling about finances. When your children ask about budget and expernditures, take time to explain to them these concerns.
- Avoid being dishonest. If you owe someone, don’t ask your children to lie on your behalf. Teach them to face the consequences of debts. Better yet, teach them not to get buried under a pile of debt.
- Don’t keep up with the Joneses. This is an attitude that could send any family to deep debts. Competing with other families will send a negative message to your kids – that it’s alright to spend beyond your means as long as you can address your caprices and unnecessary wants.
- Avoid being too comfortable with debt. Check how you spend on your items. Ideally, you should be spending from your own pocket and not relying on credit cards. Resort to the latter only if there is an emergency. Otherwise, teach your children to save for the puchase.
- Avoid tackling too much about money either. You can discuss money matters but be wary of making it the sole topic in the household. It may make your children think that money is too important. Also, teach your kids the value of money, but tell them it cannot equate happiness.
- Impulsive spending may influence your kids. Teaching them to think twice before buying anything will make them more responsible in handling money. Teach them to buy one at a time as well.
- Do not overspend. Show your kids that the right way of managing finances is to buy what’s important, and to buy what your family can afford. Buying at thrift stores and book sales is not a bad idea after all. Teach your kids to be a smart consumer.