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How To Teach Your Child Good Spending Habits

How to Teach Your Child Good Spending Habits eloan PRESENTED BY 30% OF ADULTS HAVE HIDDEN CASH, A PURCHASE, A BANK ACCOUNT, A BILL, OR SÓME OTHER STATEMENT FROM A PARTNER ESTABLISH A HEALTHY FINANCIAL RELATIONSHIP WITH YOUR PARTNER 10.5% SAID THEY LIED TO A PARTNER ABOUT DEBT, MONEY EARNED, OR OTHER FINANCES It's easier for couples with a positive financial dynamic to create a platform for family discussion. Get on the same page as a first step in teaching your children. LET YOUR KIDS MAKE A M.E.S.S. Lay a strong foundation of basic financial concepts: Money, Earning, Saving, and Selective Spending. Begin with basic coin differentiation, and move on to teaching them to save with a simple piggy bank. Follow through by guiding early spending decisions. THE AVERAGE CONSUMER SPENDS O 12%-18% MORE WHEN USING CREDIT CARDS THAN WHEN USING CASH USE COLD, HARD CASH Handing cashiers credit cards and buying things online makes the concept of value unhelpfully abstract. Cash is a tangible $4 reminder of what costs a little vs. a lot. Use it whenever you can. MAKE THEM EARN THEIR ALLOWANCE Treat allowance as payment for regular chores or other help around the house- not a gift requiring no contribution. Giving kids money for nothing distorts the reality OF ALL PARENTS REPORT GIVING 55% ALLOWANCE TO THEIR CHILDREN 85% 66% 63% of what most adults will have to do: work SAID CHORES WERE A PREREQUISITE SAID MAINTAINING GOOD GRADES SAID MAINTAINING GOOD BEHAVIOR to earn a living. RESEARCH HAS PROVEN THAT COLLEGE DON'T AVOID TALKING ABOUT MONEY STUDENTS WHO RECEIVED STRUCTURED FINANCIAL EDUCATION AS CHILDREN PERFORM BETTER ACROSS THE FOLLOWING FIVE DIMENSIONS: Even if you are a disciplined saver and spender, your child needs active guidance in order to learn your good behavior. Give them a seat at the table when it's time to talk budgets, pay bills, and discuss big purchases. v Low materialism v Low compulsive buying v High self-efficacy v High future orientation v Financial risk tolerance eloan Source: Source: Dun & Bradstreet Study with multiple references, including and; OR - The U.S. Census Bureau estimated that 191 million debit card holders would use 530 million debit cards in 2012. Source - Copyright © 2012 E-LOAN, Inc. All rights reserved.

How To Teach Your Child Good Spending Habits

shared by kimwebbpalacios on May 21
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One great investment that all parents can make is in the financial education of their children. Kids who learn money management skills and healthy spending habits at home are more likely to become fi...


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