Parents have such an important role to play in the financial education of their children. The way you live, your lifestyle, and how you deal with money, particularly with them and what they can see, will directly affect behaviors they adopt as their own. The greater the number of dangerous examples parents set for their children, the lower the probability of their and their kids’ financial success. Below is a list of 7 of these bad examples to avoid.
- Harmful attitudes about money
- Failing to budget
- Inadequate investments
- The wrong insurance
- Living beyond your means
- Carrying too much debt
- Not having a personalized financial game plan
If you are already avoiding some of these bad behaviors, but maybe your kids don’t see it, make it visible to them. Show them your budget or work on it while they are around and make it known that you are working on the family budget. Discuss family finances with them. Review goals and major purchase plans. During these conversations, talk about living within your means, avoiding debt and be positive. Avoid some of the common negatives about money such as “we don’t have enough”, or “money is bad” kind of attitudes. Your children will learn more about money from you than anywhere else.
You can start today with many of these. In particular, having a positive attitude about your financial future and creating and following a budget is the best start. If you don’t have one, create a budget today. It only takes about 1 hour to do it right. CalendarBudget can help you with this, or you can even do it on paper. The key is to make a commitment to change for good and to get started right away.