Help your kids make better financial decisions later in life

It’s often been said that parents are a child’s strongest role model. With that duty comes enormous responsibility – a duty to provide love, stability and encouragement, all the while leading them through the challenges of their lives.

Of course, most parents are better at leading in some areas, and not so much in others. Some struggle to talk to their kids about health and their bodies, some avoid conversations about spirituality, others can’t talk about the circle of life (and death). One common topic that most parents find tricky? Money.

When it comes to teaching kids about money, there are some of the common characteristics of great leaders that translate really well:

• Awareness – be aware of how money is talked about in the home. Talk about it positively in terms of saving for a goal – optimism is another great leadership trait.
• Decisiveness – making tough decisions is part of the job of a parent. If you can’t afford something, make the decision to save of it, teach children the importance of setting goals.
• Honesty – be honest about your financial capacity. Getting yourself into debt to satisfy the ‘wants’ in your life is not setting a good example for your children. And be honest about your own spending habits – we all overspend from time to time but a good solid budget will help to get you back on track.
• Focus – focus on your financial goals and involve the kids, especially when the goal is something fun like a holiday or a new computer.
• Inspiration –let your kids see the benefits of working and saving hard to get what you want so they follow suit.
• Confidence – you will be able to have confidence in the financial decisions you make if they are well informed. Some people find the help of a financial adviser is invaluable; others use readily available online tools and education to take control of their finances.
• Resilience – don’t let financial setbacks get you down. If things aren’t going well, review your goals, budget and financial plan and move on!

Most of all, when it comes to teaching kids about money; lead by example.

“Children have never been very good at listening to their elders, but they have never failed to imitate them.”

– James A.Baldwin

General advice disclaimer

The information contained in this document is provided for education purposes only. It has been prepared without taking into account your particular financial needs, circumstances or objectives. You should consider the appropriateness of the information as it relates to you. You may wish to consult an adviser before you make any decisions relating to your financial affairs.