You Are Your Child’s Best Role Model

You Are Your Child’s Best Role Model

Parents are their children’s first teacher and the biggest influence in their children’s lives. Children learn by observing and imitating their parents’ actions and words. It is never too early to start teaching your child about good money habits, and the best way to start is by being his/ her role model. Here are some tips on how you can be one.

Tip 1: Be consistent

Actions speak louder than words therefore, parents need to practice what they teach. If parents constantly fight/ stressed over money, their children are likely to overrate the importance of money. Similarly, if parents constantly splurge on luxury items, their children may never learn to live within their means.

Tip 2: Make the right buy

Teach your child to buy for quality and not price. He/ she should look for the most cost effective option and not the cheapest option e.g. a pair of $80 shoes that can last for a year vs. a pair of $20 shoes that can only last for 2 months. Prestige may not necessary be the best buy. While it is good for occasional self rewards with treats, it is important to be realistic and avoid too much of an extravagance. In addition, waiting for the right time helps in buying an item at a better price!

Tip 3: Decode advertisements

Advertisements are around us and pop up endlessly from the moment we step out of the house, from lifts, building facade, moving vehicles, bus stops to train interiors and even toilet doors and more! Most of the time, advertisements create “artificial social norms” and peer pressures create “artificial needs”. Run through the advertisements with your child to help him/ her understands what are advertisements all about and if the claims made are really true.

Tip 4: Set basic rules

Create basic money rules for yourself and your child to follow. When a trip to the supermarket is required, make a shopping list beforehand and stick to it. Determine if that pack of delicious chocolate milk is a need or a want. Have some fun “debating” it over with your child and take this chance to help develop his/ her reasoning, thinking and communication skills.

Tip 5: Pay attention to details

Do you know exactly what and how much you spent in total last week? Down to the cents? Set a household budget and take note of your actual spending and savings. Teach your child to compare prices among the different brands, clip regular discount coupons and take note of any special deals for potential great savings. Go through the household account with your child and have fun at by involving him/ her as your mini accountant to help with the recording or simple counting.

Tip 6: Be committed

"Like mastering a new language, developing athletic skills, or becoming a master musician, financial fluency requires time, practice, intention, the acquisition of financial language and values." ~ Joline Godfrey, author of Raising Financially Fit Kids. Indeed, forming a good habit takes time, effort and continuous reminders and practices with the children. Good money habits take more than just a few lectures on trying to get a child not to waste money or to save up more.