Would you like to form a valuable financial legacy for your kids that goes deeper than an inheritance?
No matter what the future holds, we want our children to be well prepared. That type of preparation begins with parents and guardians who are willing to teach them how to have a healthy relationship with money.
As you teach your children about earning, saving, spending, and sharing their money, here are three helpful tips:
1. Start young.
Encourage smart money habits with your kids as early as possible. Instead of an allowance, encourage kids to do age-appropriate jobs around the house to earn a little money. There are many lists online that will break down tasks by age. These responsibilities offer even the youngest child the ability to take pride in a job well done. Once children have earned a little of their own money, you’ll be able to teach them the basics of saving, spending, and generous giving—lessons that will last through adulthood.
2. Let them make mistakes.
It can be hard to watch your child suffer because of their own poor choices. However, it’s best to love them enough to let them make mistakes and learn about consequences while they’re still under your protection. Don’t run in and fix things. Resist the urge to offer them a handout that wasn’t earned in order to rescue them from a decision they made.
3. Look for teachable moments.
Let’s imagine that your child spent all of his savings on a toy, but now wants to buy candy as you check out from the store. He then begs you to buy him the candy or give him money to cover the cost. Sure, it would be easy to give in—but he won’t learn a thing. Gently explain why things didn’t work out the way he wanted. Then, talk through what he might have done differently this time and show him how he can make the situation better next time.
We’re here for you and your family at every age and stage. If you’re interested in leaving a financial legacy that lasts throughout the generations, ask how we can help!