The last three weeks have been a challenge in the Foreman house. We have had our girls home with us and have been doing virtual learning. So, with that in mind, I thought it might be fun as an element of learning for the girls to join us today on the Thrive For[e]ward podcast and talk about money.
LISTEN as I turn over the mic to them. They had some great questions about my job, what I do, what is money and what does money mean to them. I know that teaching kids to handle and understand money at a young age can create positive habits and relationships with money. The hope is that these can better adult decisions.
According to Insider research shows that most habits around money are set by age 9, so it’s key to start teaching early. Children first learn by observation and then create habits. These habits are carried into adulthood.
Some of my tips that can help create healthy money habits include:
Talk about money as a family, openly and often
Children are impacted by a parent’s financial decisions whether or not you choose to include them in the conversation, stresses Hemphill. If you’re transparent about your money choices instead of leaving kids in the dark, you’re setting them up better for success by helping them understand the power money can hold and providing opportunities to learn from your mistakes together. (Source: MPR News)
Give an allowance
Allowing your child to handle sums of money is a perfect opportunity for learning. What should they save, spend, invest and give are all great lessons.
Think of allowance not in the terms of everyday chores that will be life skills your child would learn. Instead look at them as things that will help them grow. My kids and I talk about this in the episode so tune in to hear my whole outlook.
Build and desire to save
When they spend their money, have them understand what a need is, want and wish. Ultimately this will lead them to save and be thoughtful about their spending from an early age
Engage and activate
With kids, a hands-on approach is beneficial. Think about the ways to engage them in the store, how to compare costs for goods. Get creative and have fun with the process.
As we know, money touches all aspects of our lives. We cannot keep it in a closet and shield our children from it. It’s better that we talk, educate, and involve them from an earlier age.
When my youngest daughter asked me what my favorite part of my job is… it was easy for me to answer.
I am honored and privileged that I get to help my clients through life transitions. Some are good, some are bad but ultimately the work I do is rewarding.
RESOURCES from today’s topic:
In a recent Money on Your Mind episode, I answered the question How can I teach my kids about money? If you haven’t seen this episode, I invite you to watch!
Also a great book that I also recommend is The Four Money Bears by a friend of mine Mac Gardner, CFP. The book teaches kids the four basic functions of money. Spender Bear, Saver Bear, Investor Bear, and Giver Bear can each do good and bad things with their money. When they work together they learn to build a budget and teach each other how to better manage their money.
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