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.
If you remain a positive financial role model for your children, they are much more likely to follow suit once they begin working and generating a living wage. Using a few tips, learn how to be a positive financial role model anytime you are spending quality time with your child.
Set an Allowance for Your Child
Set an allowance for your child whether they receive an allowance weekly, bi-weekly, or even monthly. If possible, require your child to complete chores, housework, and other errands in order to earn the allowance they receive. If you choose to provide your child with an allowance without requiring chores, it is important to set rules and boundaries before allowing them to spend without thinking.
Require your child to pay for their own school clothing or special lunches or treats while dining out if they are provided an allowance without working for it. Showing your child that money does not come free is extremely vital at any age, especially as they are learning to fend for themselves and are coming of age to obtain their own job.
Teach Your Child the Value of a Dollar
Teaching your child the value of a dollar when they are young can go a long way once they are working at their first job, heading off to college, or investing in a home. Some ways to help teach your child or teen the value of a dollar while remaining as a positive financial role model include:
- Make Lists: Make lists anytime are shopping with your child and they intend to purchase items for themselves or others. Use your lists to estimate costs beforehand to show your child just how much of their money they will be spending.
- 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.
Match Your Child’s Saving Attempts
If your child has a genuine interest in saving their money and becoming financially competent and independent, consider opening a bank account in their name. Opening a savings account in your child’s name is a way to save money on their behalf while also providing them with the opportunity to do so with any money they accrue or earn.
If possible, consider the option of matching the amount of money your child commits to their savings account on a monthly or regular basis. Matching the amount your child contributes into their savings account is not only a way to provide more for your child in the future, but it is a great opportunity to keep your child motivated to save even more money. As your child gets into the habit of saving money and depositing money into their savings account, they are less likely to break the habit once they are living independently and away from you.
Play Math-Centric Games Together
Spend time playing math-centric games with your child to help them become familiar with calculators and calculations when it comes to handling and managing money. Encourage video games that require your child to think quickly, calculate mathematic problems, or even communicate with others. Providing your child with the right learning resources when they are younger can come in handy once they are out on their own and discovering how to navigate the world without your guidance.
Seek Out Coupons and Discounts
Using coupons and discounts whenever you are around your child is another way to showcase your financial savviness and capabilities. Using coupons and discounts should always be done, even if you are financially stable or wealthy. When you show your child the importance of saving and carefully managing their money at any income level, they are more likely to move forward and into adulthood while remembering your way of life.
To encourage engagement when shopping with your child, ask them to seek out coupons or discounts online. Use an app together to find the very best deals whether you are shopping locally or online. The savvier your child becomes when seeking out and using coupons, the more they are likely to retain these habits as they continue to grow.
Buy in Bulk
Buying in bulk is not only a way to make your money go farther while shopping, but it is also a way for you to showcase your financial savviness to your child. Buy in bulk when you are around your child to show the value of purchasing regular items in a larger quantity, regardless of your financial status. Even if you have the ability to shop weekly without interfering with your way of life, showing your child that buying in bulk and ahead of time is smarter and less expensive is a must as a positive financial role model in their lives.
Ask your child to venture with you to both traditional grocery stores as well as bulk stores to compare prices on their favorite items. Instilling that bulk shopping is a great idea is one way to ensure your child is well-aware of how their money is spent once they begin providing for themselves or living on their own and away from home.
Knowing the importance of remaining a positive financial role model for your child is essential as your child begins to grow and evolve into a young adult. By consistently remaining financially stable and knowledgeable yourself, share and pass down the wisdom you have learned to better assist your child and their financial future.