Share What You Are Doing.

You could be the “perfect” role model; your home is paid off, your expenses are in line with your income, you have all the recommended accounts set up, and everything is on track. Provide some insight as to what you have done to accomplish this, and your child will likely enjoy putting savings aside, not spending what he/she doesn’t have and, down the road, opening accounts of their own.

Have you taught your children HOW to plan for their future regardless of how they make money?

Kids learn as early as kindergarten to do well in school, get a job when you are of age, go to college, and start a career. The reality is not everyone follows a cookie-cutter path, especially today where work-life balance is the new norm. Regardless, with some discipline, most can achieve financial success and live comfortably. Whichever path your child follows, being supportive and providing them with the proper tools and techniques can help them become financially independent and successfully save/invest for their future. Opening a bank account, setting up a college fund or a CD, putting aside allowances and summer income are life lessons they won’t get in school.

One Home, Two Scenarios.

Two children grew up in the same household, yet each came away with their own perception on financial responsibility. Each had the same opportunities available, but did both take advantage? Maybe one started working at 15, regardless of if they needed to and the other appreciated that their parents still provided for them. Both graduated from college, yet one made good financial decisions and the other did not. Why? Did one child see all the credit cards in Mom’s wallet as a status symbol and the other see it as a liability? Did one see sports cars and vacations and just assumed everyone’s life was like this? Perhaps one had more ambition than the other or one felt more entitled, who knows, but without “teaching” the lesson may be getting lost. Sharing your “working hard to be successful” is the tip of the iceberg for being a positive financial role model. Figure out what each child responds to and guide them accordingly.

Properly preparing your children about money doesn’t have to be a challenge. If you teach them the difference between “need” and “want” and explain how a bank account and a budget work, you can lead by example. Instilling the message that setting aside a percentage of what is earned for a raining day may feel old school but still offers visible results and can up quickly. A few minutes of your time can be priceless for their future.

CHECK OUT OUR RELATED VIDEO HERE.

The comments expressed and are for general information and not to be relied upon as financial advice. Please consult legal or tax professionals for specific information regarding your individual situation.

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