How To Help Your Child Succeed Financially

As tax season is upon us, finances are one of the biggest things on many people’s minds. Many people would be surprised to know that many parents talk with their child psychologist in Littleton to figure out when, how, and why to talk with their kids about finances. Read on to find out expert advice for helping your children grow to be financially successful.
Be Responsible
The first thing you must consider when talking to your children about finances is if it is responsible to do so. While therapists in Highlands Ranch don’t like to start with a list of things not to do, it is important to keep the safety and integrity of your child at the utmost importance. As such, do not share frightening financial news with children who are not old enough to understand it, do not “guilt trip” your child by pointing out how much money they cost you, and for families of divorce, do not criticize your ex’s financial skills or contributions. In fact, don’t mention those at all!
Be Transparent
Keeping the above caveats in mind, you should try to be somewhat transparent with your children about finances so that they can see how handle them. For example, it is perfectly acceptable to tell your child “we are not going to buy that very expensive iPhone now, because it costs $700. We are going to buy you a nice refurbished one so we use our money wisely.” In general, you can also give your children an idea of the way adult finances work, such as explaining why adults have so many bills to pay, and explain that payment is like a reward for good work.
Set a Good Example
If you want to raise a child who grows up to be good with finances, start early. Set good examples, such as showing your child how the bank works and talking about why we save money instead of always spending it. Handle your debts promptly and make it clear that money must be respected, as must borrowing from friends or family members. Show your children what’s important by putting priorities first—even if that means waiting on new clothes or gifts. Promote the value of time and energy instead of just encouraging mass consumerism. Always convey an attitude that you, as a responsible parent, have the finances under control
Give A Chance to Practice
One of the things that child behavior psychologists in Littleton enjoy is giving kids a chance to practice and get hands-on skills with what we learn! To raise a financially responsible child, consider starting them with a junior savings account that earns a little interest. Most children enjoy visiting the bank, and most bank staff are happy to explain some things in a child-friendly manner. Use this account to work toward meaningful goals or purchases, and let your child experience the pride of watching their account grow. Praise efforts to delay gratification and spend wisely. Of course, if your child would rather spend, let them—this is all part of the experience.
For more tips on teaching your children life skills at any age, check back on this blog often. For a custom solution and advice, set up an appointment with a child psychologist today.