Even before your child understands how money works, they can start with your attitude and feelings about your financial situation, which has a lasting impact. But avoid Talk about money with your kids It is entirely possible that it is even more harmful to their future financial success.
“Deep down, most people think that money is a bad thing and that children need to be avoided from being covered up.” Ramit Sethihomemade millionaires and author of new book, ”Money for couples“Tell CNBC to do this.
“You don’t protect the kids from bikes. You don’t protect the kids from trying tomatoes. So why protect them from something far more important than these two examples?” he said.
When you talk to your kids about money, Sisi says he will “ban” the family: “We can’t afford it.” That’s why.
“It’s not a good thing”
Many Sethi recalled his “money” podcast about his parents’ “We Can’t afford” podcast when they grew up with his own parents.
“They really believed it,” Sisi said. “So, even if they do a good job and make a lot of money after 30 years, they still feel scarce in money.”
Positive relationship with money How much money do you actually havesaid Sisi. Teach your kids this phrase can inadvertently scare them to spend money, even if they are technically able to afford what they want.
Instead of saying you can’t afford something, Sethi suggests responding to the norms and culture you set in your home to explain your decision. You could say, “In our family, we choose to spend money on healthy food instead of popcorn with butter,” he said.
Or, “not everything has to be explained a lot,” he said. It may not be satisfied with a child who is begging for a toy in the store, but rather planting seeds for the kids to understand that they cannot and should not spend money on every little thing you want to impulse will benefit in the long run.
“Say no, it’s a good thing,” he said. “I like to say no, sometimes you just have to say something.”
Help your child interact with money
In addition to talking about money, Seth also encourages families to involve children in financial tasks so that they can build a positive foundation for their relationship with money as they grow up.
He suggests, let them watch you pay your bills, and even click the “Pay” button. And try not to make loud calls to the height of electricity bills or the expensive rent. Instead, let your kids know that the money is providing a roof for their heads and power for playing video games.
“As teenagers, they (can) help plan an entire family trip or help buy a family car,” said Sisi. “That’s how they start learning about taxes and tradeoffs. That’s how you make them in the real world The way to succeed.”
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