Being a Role Model
Teaching kids about being financially responsible should start with parent’s active involvement. Kids will learn through watching how their parents manage money. Actions speak louder than words, so if the parents are not practicing what they are preaching, it is unlikely their words will have much impact. If the parent isn’t comfortable managing their own money they need to learn financial fundamentals themselves. A great way to do this is through an online course such as: 6 Steps to Reach Financial Security.
Parents should be able to do the following for themselves before starting their children’s money education:
- Keep their records in an organized fashion.
- Understand where their money goes.
- Know their own Net Worth.
- Pay themselves first.
- Understand their risk profile.
- Set short-term and long-term goals.
Your overall financial health consists of many elements, from learning how to live within a budget, to building good credit, controlling debt and excess spending, developing short and long-term financial goals, and learning to invest wisely. It may seem like a lot to master, but you may be surprised to discover that you’re already in good shape, based on your involvement in your household financial activities.