This is the 2nd part of my last post, I hope you’ll enjoy it also.
There’s nothing more exciting than to sit down and discuss the right things we can do with our money.Unfortunately, it’s a human nature that we mostly learn from what we can see, rather than listening to what others say. Kids are also not an exception of that habit. They used to learn more from what they do than what they say.
So your behavior with money will be the deciding factor that’ll teach your kids the right way to manage their money in future.
6. Talk little about money
This is another misconception we normally have in our families. We normally don’t have any major discussion about money just because it’s a contentious matter in our family. But, if you don’t talk about money matters to your kids, then they genuinely don't develop a fair idea of costing, budgeting, and wisely spending money. There’s not enough of that knowledge conveying on TV, and you need to help them for building a good money management habit.
Kids must hear you talking about money matters, kids must have financial responsibilities that are suitable to their age and mentality. Teach them about saving their pocket money, that way they can buy their things without seeking help from elders. Ask them to donate a small part of their savings or allowance to a charity, that’ll be an excellent lesson for kids. Make them realize that it’s all about earning and giving, and they need to focus on them both.
7. Spend like there’s no tomorrow
People often use this term to justify their overspending behavior, and it’s very much harmful for their finances who follows this concept. What if you spend a lot to eat, drink and buy, and you don’t die tomorrow?
If you follow this misconception, and demonstrate it to your kids that we must behave like there’s no guarantee for tomorrow, then from a financial standpoint you're doing wrong with their financial future. It’ll force them to think that there’s no need to prepare for the future, and that is the worst financial lesson you can possibly give to your kids.
8. No savings or investing plans
You must chalk out savings and investing goals for your future and inform your kids about them. They must be aware of your financial goals and their objectives. These goals will be the opportunity to teach your kids the objectives and preparation for future savings. That’s definitely a lesson your kids need to learn.
If you can convince your kids with your future financial goals and objectives, you can also encourage them to contribute towards them. They can contribute as much as possible for them. It may add some dollars and cents extra into the family savings, but the contribution will initialize the future goals for your kids.
9. Always looking for a sale
Everyone knows that the most convenient way of saving money while buying is shopping on a sale.But, too much shopping from a sale is not saving, you’re willingly or unwillingly wasting your money.
The main purpose of running a big sale is to engage people to buy things what they wouldn’t need. So, avoid such sales and always buy only things, which you need most. That’s a good lesson to teach your kids when it comes to saving money.
10. Financial habits don’t affect health
Financial stress can hamper your health. If you’re knee deep in debt, the stress itself can shorten your life. Get control of your finances at least for your kid’s sake. Good financial moves can reduce your debt problems. Your kids will also learn to make right decisions regarding their money problems.
If you have any financial problem, discuss it with your kids. Sometimes kids have solutions, which we elders can’t find properly. They’ll learn from your mistakes, they can solve your problems, and it’s possible they can be safe from such financial problems in future.