How to be a money role model
It's never too early to start teaching your kids about money. Babies and toddlers develop all sorts of skills by watching and imitating others - and the same goes for learning about money.
Your kids will first find out about money - what it is, how it works and how to handle it - from you. Like all parenting responsibilities, you'll need to be a role model.
You can equip your kids with the financial know-how that will serve them well for the rest of their adult lives even if you don’t think you are a financial whizz. To bring up a financially savvy child you (and your family) may need to have a financial health check first!
Examine your money matters
- Do you live from one pay day to the next?
- Do you have a savings plan?
- Are your credit cards maxed to the limit?
- Do you set aside money to pay the bills?
- Do you have a pot of money for emergencies?
- Are you spending money on things you don't need?
Even from a young age, the way that you manage money will influence your children's attitude towards money. To get your own finances on track sit down and plan a family budget for the year. You can include the kids in the budget process but keep it simple!
TIP!Sit down with the kids at the kitchen table. Get a big piece of butcher’s paper and a felt pen. Write down how much you earn. Write down your expenses – show them a bill or two. Write down the amount of money you save. Work out what’s left over -- if any. It’ll show your kids that you have a limited amount of money and it has to be used for lots of different things.
Doing a budget and talking about it with the kids will begin to teach them about:
- Kids and the concept of money
- Kids earning money
- Kids spending money
- Kids and saving money
- Kids and borrowing money
- Kids and giving money