How Children Develop Money Habits

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HOW CHILDREN DEVELOP MONEY HABITS

Most people get their money habits and skills from their parents and caregivers.  That’s why it’s important that parents and caregivers  have some background in how children develop, financially.

Ultimately, most adults seek financial well-being. Research shows that people feel they have financial well-being when they:

  • Have control over day-to-day, month-to-month finances;
  • Have the capacity to absorb a financial shock;
  • Are on track to meet their financial goals; and
  • Have the financial freedom to make the choices that allow them to enjoy life

By helping your children develop important behaviors, knowledge, skills, and personal traits – when they are developmentally ready – you can help put them on a path to financial well-being in adulthood.

Keep in mind that you’re teaching about money, on purpose or not

Your children are constantly watching and listening, so they might absorb more than you think. When you shop for a bargain, or splurge on a treat, or plan a special occasion, you’re showing your kids how you think about money.

Don’t worry too much about things you don’t know

Don’t feel confident about money matters? You’re in good company. Most people don’t. And that’s okay. Every day, you excel at something your children need to learn – whether it’s managing your time between work and home, saving money when you shop, or planning for a future event. Use these as teaching moments and you will be surprised at just how much your child learns, no matter what their age.

This year’s theme for National Financial Literacy Month is Envision a Financially Literate Future. That is why it is imperative that we teach our youth to be financially literate. During Financial Literacy Month let’s focus on the financial education of our nation’s youth. Comment below and tell us what you are doing to promote financial literacy during this month, and how will you keep promoting financial literacy once this month is over.

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