ildren smarter adults—to say no to impulse buys and instant gratification through consumerism. If your child wants a toy on a whim while food shopping, say no, but don’t give in to your impulses and buy the magazine or that cashmere sweater either. If your kids are begging for an in-app purchase on the spot, say no. Make sure it’s no with a caveat—if they want that toy or those designer jeans, they have to save up for it or use some of their own money to get it. Making them responsible of their own impulsions will teach them to take responsibility for themselves and their finances, and generally helps them become much more prudent shoppers—they probably don’t have all that much money, so they end up learning how to save if they want that expensive piece of technology or clothing.
- Don’t Confuse Wants With Needs
Making our children understand the difference between a want and a need at a young age is paramount. Not only will this practice help them understand the value of necessity, it will teach them that “things” don’t equal happiness. And who better to teach them than parents?
Often times, we start conversations with “I need those new designer shoes” or “I need to see that movie.” That can confuse children and teach them the wrong lessons. Needs are what matter for your survival and, to some extent, your comfort, such as a roof over your head and food on your table. Wants like designer clothes and a flashy car aren’t necessary for your survival, they’re just added bonuses that most of us live without—happily. By understanding the difference it can keep those impulse, want-type buys in check.
- Spending Money, Not Time
Some parents tend to forget that our children not only want us, they need us. They want our time and attention and when we supplement our attention with “things,” our children become hardwired to believe that “things” are love. This will lead to an adult who will spend money chasing “things” to fill a void that’s been there since their childhood. It is far easier to buy our kid the app than to play a board game. But, in the long run, this can cause bad habits and leave permanent and unforeseeable emotional and behavioral scars for both parents and their offspring.
- Keep Up With the Joneses
Jealousy, the thief of joy. The antithesis of gratitude. Unfortunately, it’s a primal emotion that can be a challenge to keep at bay. But, in order to teach children how to be smart financially, it’s something that needs to be removed from the equation (see what I did there?). There will always be someone who has a bigger and better car, house, outfit, etc. and teaching children that it doesn’t matter can save a lot of heartache—and likely debt—along the way.
Parenting is hard and for many so is managing their finances. Put the two together and it can be a toxic mix. Thankfully, there are ways to avoid a future financial train-wreck and all it takes is healthy communication and discipline. Your children will copy your actions, so if you embrace sound financial choices everyone will emerge a winner.
Carlie Velasquez is a working mom of five—yes five—little hellions-that-she-loves-with-all-her-heart. From her own experience with her parents to now being a mother herself, she’s learned all the dos and don’ts of her brand of good parenting.