7 Ways To Be A Positive Financial Role Model When You Are Around Your Child

Raising a child requires more than providing love, care, and essentials. In order to truly prepare your child for adulthood and living independently, being a financial role model is a must. As children grow into teenagers and young adults, they often look to their parental figures and other role models to help determine how they will live their lives once they are on their own.

  • Hourly Pay: If your child is old enough, offer a set hourly amount for their assistance during their summer break when working on the yard or around the house. Allow them to work for their earned money to better understand the value of a dollar.
  • Review Bills Together: As your child gets older and becomes a teenager, it is imperative to stress the importance of financial stability. Review and compare the bills you receive each month with your teen as they begin working their own job or when they become responsible for paying for and maintaining their own vehicle. Reviewing financial statements and bills together is a great way to provide valuable insight to your child when it comes to making their own financial decisions in the near future.
  • Require Your Child to Pay Their Way: When your child is craving a special treat or is asking for a new toy or device when it is not near a holiday or their birthday, consider requiring them to save for the item themselves. Requiring your child to save their own money for an item or experience they desire is one of the best ways to teach them fiscal and personal responsibility. When your child takes the time and puts in the effort to save for an item they truly desire, they are much more likely to take pride in caring for and preserving the purchase while also valuing their investment more.
  • Review Their Spending: While it is important to provide your child with choices and financial independence once they begin earning or saving money, it is also important to set boundaries. Periodically review your child’s spending to discuss their current habits. Praise positive spending decisions and suggest alternatives for spending decisions that were less than optimal.

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