3 Ways by Which Parents Can Encourage Healthy FInancial Habits

Most if not all kids learn from their parents, and this goes for smart financial habits as well. Of course, what works for one parent might not work for the other.

However, here are 3 ways by which parents can encourage healthy financial habits:

#1: Introduce your children to money with a hands-on approach

Raising financially-savvy kids requires one to introduce them to money itself from a young age. For some, as soon as their children begin to ask for things, the conversation about money begins. In fact, they are encouraged to touch, count, play with and identify different denominations of money.

#2: Explain how important it is to earn money

While some parents will have their children carry out household chores for money, this hardly teaches them anything other than just cleaning their room so as to get their allowance. Some parents don’t give their children an allowance but actually give them minimum wage jobs or to carry out tasks for people in the neighborhood in exchange for money. This is an excellent lesson when it comes to teaching them how to budget and earn money to stay afloat as well.

#3: Set an example for them to develop a healthy relationship with money

Since children pick on behavioral cues from their parents, every time you wince when you see a bill or two, they begin to associate money with pain or stress. Believe it or not, this carries on into adulthood where they will continue to struggle with money. They will show a hatred towards money and this won’t certainly help their cause.