Are money habits inherited? Many behaviors are passed down from parents (eating healthy, conflict resolution etc.).
When surveyed, 75.9% of people say their parents influence their current financial habits. With 61.5% saying they are making efforts to be MORE responsible than their parents.
When you look at how things influence you, one of the obvious key pieces is how open/transparent was your parent on finances? Did you know the money stresses they dealt with?
Parents have influence over every part of a child’s life and lacking transparency can cause long term damage. Or at least create an environment where your child will learn money habits from outside resources. It’s been proven that parents that communicate the negative affect finances can have your life better prepare children to be in good financial standing as adults. My generation saw parents endure the recession of 2008. The topic of finances dominated the news therefore children were exposed to the realities.
We are going to cover the top 3 learned behaviors that can set your children up for success.
- The value of money: chores vs. responsibility
- Discerning the difference sets the child’s foundation for not just finance but hard work
- Tangible money – allow them to see and touch and store their money so it feels real
- Don’t involve the child in transactions outside of their control. Ex: purchasing a home.
- Impulse buying
- Create the “savings” account
- Set goals
- Make sure that needs are met