It’s important for us all to be good role models for our kids. They’re impressionable and always watching — so whether you intend to or not, they’re learning as they observe us interacting with money.
For example, if they only see you swiping your credit card to make purchases, they won’t have a sense of the value of money. They’ll only know that if you want something, you swipe. So it’s important to show our children that we eventually get a credit card bill and we have to pay for the things we want.
It’s good to show that we are thoughtful and careful when making purchases. This lets our children know that money is limited. It can be simple things like showing the kids that you made a grocery list and only purchase items on your list. You can also show them when you compare prices of groceries at the store – sometimes, the best deals aren’t always the ones “on sale.” Make a point of acknowledging how much money you saved.
Giving children a healthy respect and understanding of how money works will provide them with the foundation to be more responsible with their own finances when they’re adults.
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.