We often think about passing our wisdom and knowledge to our kids, but it’s equally important to be careful of the unintentional bad lessons we teach – especially when it comes to our financial habits. Here are a few behaviors you don’t want your kids to learn from you:
Not setting a financial goal: It’s important to show the kids that some things require actual preparation and work. It’s also a great opportunity to show kids that you sometimes have to delay immediate gratification for a goal down the road – perhaps let them know you want to save for holiday shopping or a vacation in the future. Better yet, have them chip in a little of their allowance so they’re part of the process.
Going through life without a budget: If you’re paying for everything on the fly without consideration to what you can actually afford, your kids will learn your same habits. Show them you are being thoughtful about your wants and needs, and whether or not those expenses fit within your budget. If they don’t, show them you have the will power to stop spending as needed and they will learn to do the same as adults.
Never talking about money: As with most important things in life, strong communication is key. Let the kids hear you talk constructively about money so they understand it’s important and limited. You work hard for it and therefore that you want to be thoughtful about spending it.
Making sure kids have a comfortable relationship with money will translate to a healthier financial future for them.
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.