The Good Financial Habits You Can Teach Your Kids
It is a great feeling when you manage to teach your children something which is going to be of great use to them throughout their life. When you think of all of the things which you could teach them it is clear that good financial habits are among the more important.
Don’t Buy Things You Don’t Need
I hate to see my daughter upset because she wants something I don’t want to buy for her. Sometimes this can be a little toy or a sweet which costs next to nothing. I know that the people who walk past as she lies on the ground crying think that I am a monster. Maybe I am a monster, but I want her to grow up knowing that you don’t need to go around buying every single thing which takes your fancy. When I was a kid my parents weren’t exactly flush with money, so I grew up treating every toy and every trip to the cinema as though it was something really special. This attitude has stuck with me and I would love for my daughter to feel the same way when she grows up, rather than being someone who fritters away money left, right and centre.
At what age should a youngster start saving? My little girl just turned three so I haven’t spoken to her about the possibility of opening her own savings account or dabbling in the stock market yet. However, it is certainly a good idea to judge when would be a good time to get your child to start saving money. A simple little piggy bank is a great start to get them into the savings habit. Having them save up to buy something they really want is definitely going to be better for them than just handing over the cash when they ask for it. As adults we know how hard it is to earn money and then to save it but the young ones need our help to understand this.
Think About Your Finances
Just thinking about your financial situation is one of the best ways of improving it. I am not talking about using the power of your mind to will extra money into your bank account. What I mean is that some people go through a big chunk of their life never thinking about how to make their money work harder for them. Some people barely even check their bank statements if truth be told. Of course, we don’t want to go too far the opposite way and spend all day counting our cash. However, it is a good idea to let the kids know that thinking about their finances is one simple way of making them better in the long run.
Don’t Waste Things
My daughter sometimes leaves food on her plate or stops using toys which are still perfectly fine. I was brought up to not waste things and I still think like this. If we are eating out in the restaurant and there is food left on the food I will think of ways of taking it home with us. Equally, if bread goes hard in our kitchen I will make a bread pudding out of it or crush it up into breadcrumbs to cook with. If you are quite comfortable financially this might seem like an unnecessary waste of time or even a bit embarrassing. However, the next time you throw out stale bread or leave food on your plate just think about the example you are setting to the younger members of your family.