Having children comes with all sorts of responsibilities – you are tasked with shaping their financial attitudes from the day they are born.
Failing to do so could lead them into difficulties when they are older, so taking the time to teach youngsters about financial values is something that can pay off in the long term.
Here are some ideas for instilling good habits from the outset.
Set a good example
Kids are generally taught by example – if you showcase positive financial habits then the chances are your offspring will do the same.
If you have a financial plan in place and make everyday decisions to ensure you stick to it, then this is a way of setting the right example for your kids.
Parents who have a frivolous attitude towards money are likely to find this is passed on to their children, which could ultimately leave them facing all sorts of problems further down the line.
Allow decision making
Good financial management is about making the right decisions when it comes to money.
Allowing your kids to be involved in the decision making process is a positive way of encouraging them to think about money and the impact their choices will have.
It might be that you are in the supermarket and ask your children to decide which offers are best, or ask them to help with totting up the bill – small gestures can have a bigger impact than you may realise.
Giving children a sensible allowance will help them recognise the benefits of saving.
When they get older, it could be beneficial to create clear boundaries of what their money should be spent on – will you continue to buy their clothes? Should they contribute towards the weekly shop?
These are decisions you need to make as a parent to help children understand the value of money from a young age.
If your children are given an allowance, avoid the temptation to top-up their savings whenever they are short of cash.
Should they ask you for a spare few dollars to go to the cinema with their mates then help them understand that is what their allowance is for.
Once children realise that you are willing to bail them out when they are short of cash then they might end up taking you for granted in the future.