As a parent, you have a significant impact on your child from a young age and set the standard for future behaviours. There are serious implications to consider when you realize that your child may pick up on your spending habits, especially when your relationship with money is not favourable. Money will always play a role in our lives, and it is much easier to avoid a money problem from developing in a loved one than it is to repair this kind of problem later on in life.
For a start, communication is a great way to educate children about the value of money in a household – if parents are on the same page and talk frankly about their finances as far as saving, spending and planning for the future are concerned, kids become much more aware of the important role that financial stability plays in our adult lives. Take the time to teach your young children about the value of money by letting them earn it – give them chores in return for pocket money, and then also guide them in managing their own pocket money – in the future, these seemingly unimportant practices will pay off and good habits will form in place of bad ones.
Studies have shown that money habits are formed in children before the age of 7. During these impressionable years, children are like sponges, taking in every little thing and developing accordingly – these are fundamental years, where habits (good or bad) can be learnt in minutes and impact the rest of a child’s life. Setting a great example for your children not only ensures that you yourself can enjoy a manageable financial setup, but also affords your children more opportunities as they lead by your example.
It is not uncommon to come by teenagers or young adults that are still uninformed about the importance of saving and spending within their means. Many kids have grown up knowing that a card can pay the way for them, or else have never had to work to earn anything – although giving in and spoiling children is easier than saying no, it is not doing them any favours as they will only realise these truths when they are older, suddenly facing their own bills and needing to maintain a job in order to make ends meet. In most cases where young adults are over indebted or blacklisted, one or both parents/caregivers can be linked by way of example.
If you are considering starting a family or already have small a child or children, now is the time to get your finances in order and ensure that your child learns from the best. As a parent, you have the unique power to instil good money habits in your child that you may never have had the opportunity to benefit from in your own upbringing – get in touch with our team of experts at Less Debt today to clear you and your child’s path to a more stable financial future.