When it comes to good financial habits the parent is going to be the first – and sometimes the only – source of sound decision making. As a parent it is always going to be best to instill good financial habits early. When you do you make life so much easier for the child that must some day set foot into the real world of responsibilities.
Be the Example
The first thing that any good parent has to realize is that they are the example that their children are going to look up to. If you spend your money and never save anything for the important things in life they will see this. They will also imitate this when they get money in their hands. A child that does not know how to manage their money is often the product of a parent that has never learned how to manage money either.
Teach Them About Savings
It doesn’t matter how young they are. A child should always be taught about saving money. This can be the most helpful thing that anyone can do in life. A child that knows how to save money can learn about compound interest and make their money work for them. A child that never picks up the values of saving will spend every dime and find themselves working harder for the money.
Make Children Realize the Importance of Waiting for the Sale
Children are going to need to know how to save, but it isn’t going to be realistic to expect a child to learn how to save everything. That is why it is much better to simply let a child know about the benefits that come with waiting for the sale.
There are lots of new trends that hit the market and many high school children will find themselves trying to get the latest phones or sneakers on the release date. They spend a fortune trying to get the latest and greatest devices and apparel on the market. Meanwhile the kids that have good financial habits are interested in waiting until they see certain items go on sale.
A child that knows how to wait for a sale will develop a particular discipline that will serve them well even in their days as an adult. Telling a child about how they can save money even when they are spending it is invaluable.
Taking Care of Needs Before Wants
There is going to be a time when a child will grow into a teenager. They are going to have to make a decision over the needs versus their wants. This is going to be a big deal because children, at an early age, will usually pick the things that they desire over the things in life that they need.
Parents have to teach children by example. They have to put utilities and mortgages over entertainment and dining out. Children have to learn from the parents that there are certain bills that must be paid first.
