Is your child developing signs of financial indecisiveness?
Do you want your child to grow as a financially unfit individual? I know the answer – it’s a big ‘NO’. Nobody wants their child to make any serious, life-ruining financial mistake and thus it is very important that you teach your child the age-wise proper financial lessons. You should teach him that we earn to spend and at the same time, to save for a financially secured future.
It is unpredictable whether your child is going to be prudent or reckless. But if you can teach him the right lessons of life, he is expected to be a financially fit person, if not frugal. The first step towards your teaching is to ensure that if he is showing any sign of financial wavering.
Here are 3 key symptoms that indicate that your child might be growing as a financially vacillating person along with potential solutions.
Sign no. 1. Wants anything that fascinates – It is a warning sign if your child wants anything that fascinates him. He is perhaps influenced by lucrative ads and also by his friends. Your child may become an impulsive buyer in future. In his adulthood, he might buy things frequently and unnecessarily.
Solution – Whenever you go for a shopping with him, let him get the first thing that allures him, but with his pocket money. Don’t forbid him to buy the thing as it is not required. Be patience and carry on your shopping. It is quite possible that he gets attracted by another thing which is really good and necessary after a couple of minutes and he has no money to buy it. This would teach him to understand what priority is. This will make him think twice.
Sign no. 2. Often makes stupid decisions – This is another sign that you should take care of. This sign indicates that your child is very prone to make unwise financial decisions as he reaches his adulthood. He might take out a loan that he will not be able to pay off.
Solution – You should be very careful about your child’s this habit. You must keep a track of the money your child gets as pocket allowance. Add up the total amount he gets in a year and make a list of items he has bought. Now talk to the child and tell how what could be the better utilization of that money. It will help you know positive and negative aspects he is developing in terms of managing his personal finance.
Sign no. 3. Forgets important documents – He doesn’t complete his homework on time. This often indicates that your child would forget to pay bills in time in future. And thus he would be required to pay late fines.
Solution – The best solution to this problem is to give him a calendar so that he remains careful about important events and dates. Suggest him about different short-term and long-term financial aims. Let him know about the significance of doing things at right time.
These are the signs that reveal that your child may suffer from financial indecisiveness in future. But you should also make sure you’re not passing any bad financial habit to your child. Actually, we often do this unintentionally and unknowingly.
Here are 3 habits that parents often pass to their child. Make sure you’re not passing them to your loving ward.
- Budget doesn’t matter – This is one of the worst habits that parents often pass to their children. If you’ve already talked to him about your financial capability, but then continuously and regularly buy things out of your budget or make impulse purchases, your discussion with your child about your affordability will go in vain. Children are very smart; your child will immediately learn that it’s fine to spend money even if you don’t need it or can’t afford it. This is nothing but disregarding your budget and moving towards being trapped in huge debt burden.
- Compete with peers – This is a great blunder to buy things for your child to let him fit in with his peers.By doing this, you’re actually teaching him that financial competition is good. Allowing him to buy a thing that his friend has can be accepted once a while, but this shouldn’t be a regular occurrence. Tell him about building a long term relation not based on what each person has with his friends. Try to set proper examples on how to keep money and value for money.
- Credit cards will save – This is not good that your child sees you depending on credit cards on a regular basis as he may also develop this habit when he will turn adult. You should rather explain how exactly credit cards work, when and why you need to use them so that he doesn’t think that when he will be getting this, he can spend money abundantly. You should tell him about the interests and potential consequences of using credit card. Teach him how high debts and poor credit can negatively impact credit score and accordingly affect his ability to get a job, a mortgage and so on. Make sure you definitely tell him about the good things about using credit cards.
To conclude, you must discuss about different financial issues openly with your child. It would help him stay away from making big financial mistakes in future.
What about you?
How you are helping your child to grow as a financially fit person? And what are the else things you are taking care of during the growing days of your child? Please feel free to leave your valuable insights on my FB, Twitter or G+ page and let’s join our hands together for a brighter future of our kids.