Like other parents, you probably want to put your kids in the best possible financial position for the future.
One way you can do that is to help them foster a healthy relationship with money.
But, where do you start?
In my experience, there are a few really simple habits that you can follow in everyday family life to set a good example and develop a positive money mindset – an essential tool for your kids’ healthy financial future.
Follow these 3 habits to help your kids build a good relationship with money:
- Make sure you talk about money calmly
When you’re communicating with your partner about money, whether it’s around the house or in the kitchen, make sure you do it in a calm and relaxed way.
The last thing you want to do is create tension every time you talk about money or your financial situation.
Why? Well, kids are like little sponges, and they’ll be sitting there soaking it all up.
When you create a tense environment around money, it means your kids will also associate tension with money as they get older.
- Lead by example
If you pay your bills on time, you probably have a great system in place to make sure that happens.
Have your kids sit down with you so they can see how it’s done and that you’re managing your financials responsibly.
If paying bills on time is your norm, it will help your kids do the same as they grow and take on financial responsibilities.
- Practice what you preach
If you’re telling your children that they need to save for certain things that they want, make sure they see you do the same.
Demonstrate good savings abilities and the process you follow to buy large-ticket items or those things that are more “wants” than “needs”.
This can also have a positive flow-on effect as to how property is purchased and the leverage that property can provide as an investment.
So, if you have kids, the best thing you can do for their financial future is to lead by example. Calm communication in the household, showing them your systems and ultimately, practising what you preach is essential.
Do those three things, and your kids will be on their way to a future of managing their finances responsibly.