Teaching Kids Good Spending Habits
One great investment that all parents can make is in the financial education of their children. Kids who learn money management skills and healthy spending habits at home are more likely to become financially responsible adults.
Studies have linked structured financial education early in life to lower materialism, lower compulsive buying, healthy financial risk tolerance, high future orientation and high self-efficacy. Even young children pick up on parents’ financial cues and are ready to grasp basic concepts of responsible spending.
The best advice is simple, and can be followed even by parents who aren’t financial mavens. Our straightforward, intuitive approach advises:
- Having a healthy financial relationship with your partner.
- Teaching about the origins of money, creating opportunities for earning and saving, and guiding good selective spending are the final steps to personal engagement.
- Paying in cash whenever possible.
- Making your kids earn their allowance through chores, good behavior, and good grades.
- Not being afraid to include discussions of money in the regular family discourse.
Children can build increasing confidence around financial decisions by being given a forum to discuss them.
This introductory infographic is designed for use with young and growing children who are still forming their own personal relationships with money. Our related infographic, "How to Help Your Kids Establish Good Credit," is geared toward slightly older children who are nearing the age of total financial independence and who might be ready for self-directed spending through the use of credit cards.
* Please consult with your attorney, financial consultant/planner, accountant, and/or tax advisor for advice concerning your particular circumstances. The information contained herein is for general informational and educational purposes only and should not be construed as professional, tax, financial or legal advice or a legal opinion on specific facts or circumstances. The information or opinions contained herein should not be construed by any consumer and/or prospective client as an offer to sell or the solicitation of an offer to buy any particular product or service.