As a parent you want the best for your children. You teach them to have proper manners and etiquette. You want them to do well in school so that when they grow up they will have good jobs and fulfilling lives.

Manners, etiquette and schooling are all so important – but are you teaching them the difference between a good financial habit and a poor one?   Are you teaching them about money and the value of saving?

As a parent you want your children to have fulfilling lives but you also want them to be financially stable.    You want to spare your children from as many economic struggles as you can, they are your children, you love them and want the best for them.   Learn how the wealthy teach their children about finances, so that you can use the same techniques to teach your children.

Techniques The Wealthy Use  To Teach Finance:

Help Them To Understand Money.

  • Teach your children the difference between need and want.
  • Don’t always buy them everything they want, because then they don’t learn how to distinguish needs from wants.
  • For younger children, make saving fun, play money games.
  • Open a savings account for your child.
  • Teach them to deposit into their own savings account 1/2 of any monies that they receive as birthday or holiday gifts.
  • Maybe you can match their savings.
  • Encourage and praise them for their successes.

Allow Your Children to Make Financial Decisions and Mistakes.

  • How The Wealthy Teach Their Children About FinancesHave your child set little financial goals, even children can set goals.
  • Have your children make saving decisions.
  • Have them make the decision to save some of the money they receive as a gift.
  • Have your child make spending decisions.
  • Have them decide what to buy with their remaining gift money.
  • Allow your children to make mistakes, mistakes are okay.  Better to make mistakes with a few dollars as a child under your guidance, than later on in life with hundreds or thousands of dollars.
  • Encourage and praise them for their successes.

“You” Need To Set Good Financial Examples for Your Children.

  • Save money in front of your children.
  • Talk about money with your children; don’t let them become afraid of money.
  • Show them the value of saving money vs always spending it.
  • Let them see you stick to a budget.
  • Let them see you not buy everything you want.

You are a great parent, you want the very best for your children.   Follow the path that the wealthy take in teaching their children about finances; you will be pleased with the results.

Good financial habits will affect every aspect of your childs’ adult live.  As children these skills will not affect them because they are not looking for homes or cars yet.  But someday they will needs homes and cars and home insurance and car insurance. Someday they will care about credit scores and how much they have to pay for things.

If you teach your children to have good financial habits, you teach them survival skills.   If you teach a child good financial habits they will be more appreciative, as adults, of that skill set than any other skill you could have taught them.