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The article provides four tips which can help parents inculcate better money habits in their offspring.
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Many parents perfectly teach their children about good
manners, but they forget to educate their offspring about the money matters.
When children are financially dependent, they don’t understand the behavior of
money. However, once they become independent and face the real-life challenges,
they find a great mismatch in their expectations versus reality. They may spend
money on things which are not needed and miss out crucial things in life. It
finally leads to disappointment and sometimes depression despite having an
excellent track record in their profession. Thus it is vital for you to make
your child money-wise.
This is how you can you can inculcate right money habits in
You should start educating children about money as soon as they
ask to buy new things like candy, toys, video games, etc. It doesn’t mean that
you question every request made by the children to buy something. It simply means that you subtly start
teaching them little things about money. Telling simple stories related to
earnings, savings, investments and spending will subconsciously improve kids’
grasp of things related to money.
At an early stage, children should understand the value of
money and how it is different from other things. You should also discourage the
kinds on using plastic money at early stages. They may not understand the
intricacies of plastic and online transactions and may not respect the value of
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It is crucial that by the time children face the world, they
should develop an understanding the difference between their needs and wants.
It will help them develop the habit of delayed or deferred gratification.
According to a Standford study conducted in 1968, children who have the ability
to say 'No' to themselves become adults with better self-control. It will not
only help in managing their finances well when they become an adult, but it
also leads to a disciplined and healthy life.
While it is critical to inculcate right money habit in kids,
it is also crucial to enable them to make better decisions. Thus, don't put
many restrictions on what they buy and how much they want to save. Give them
weekly or monthly pocket money and monitor their spending habits. Encourage
them to save money from Birthday and Christmas gifts and pocket money to buy
their favorite items. They will feel the joy of delayed gratification and
develop the habit of saving money to accomplish bigger goals.
Children don’t follow
what their parents say or ask them to do. Rather, they do what their parent do.
Thus, be a role model for them. Spending money on unnecessary items or not
buying something important due to lack of money doesn't leave a great
impression the kids. Therefore, set your priorities right and lead a life that
you want your children to follow.
Many people feel uncomfortable talking about the money
matters. They also avoid discussing finance related issues with the kids. Many
others fulfill almost all the demand made by their children. Such solution may
look good in the short-term. However, in the long run, it only creates a
problem for their offspring when they become adults. Remember that, the money
is one of the most important things in our life. And we can't afford to not to
teach children about the better management of the finances. Thus, start
observing your kids' money habits and make proactive efforts to help them
develop the right ones.
Adela Belin is a private educator and writer at writers per hour. She shares her teaching experience with colleagues, students, and writers.
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