Parents!
Let me stress the importance of making sure we are first faithful stewards over our finances because our children are influenced more by what we do, than what we tell them to do. Adopting great money habits will be easier for them if they see us displaying the same habits day in and day out. However, there are studies that suggest they will naturally gravitate more toward being a spender or a saver.
Could this be true?
After my first year of college, I came home for the summer and found a full-time job at a parts factory. We got paid every week and I remember taking a $100 bill out of each check and stashing it in an envelope. That $100 was a little more than 20% of my take home pay but it made my heart sing to see those Benjamin Franklin’s stacking up every week. However, when it was time to go back to school I needed the money to…well…get what I needed for school and live. Nothing in me wanted to deplete the stack I had accumulated. Even though I had to spend some of the money on what I needed for school I wanted to cry every time I had to take away from the envelope because my stack was disappearing right before my eyes!
Have you ever known siblings or close family members who grew up in similar conditions and were influenced by the same parents but had VERY different habits with money? I know I do. I’ve witnessed it among my own siblings. There is something going on in our brains’ wiring that gives us pleasure either when we hold on to money or spend it. With my own girls, I’ve noticed certain habits in them very young. While I’m sure my oldest daughter got a double dose of the chemical that triggers spending, my younger daughter has already shown signs she’s going to be the saver.
Take this quiz to find out your child’s financial personality, or…
Hand them a $20 bill is see if they either run to put it in their wallets or offer to treat everyone to ice cream!
Whichever way our children are naturally wired to respond to money, the key to this whole wealth thing is to create a healthy balance between saving and spending. We don’t want them saving their money while refusing to pay for importance things like health care or not enjoying life and living with deep regrets because they can’t stand to part with their money. We also want to steer them away from impulsively buying things to the point where they find themselves in deep financial trouble.
So how do we encourage spenders to save and savers to live it up a little?
Natural Spenders:
-Encourage saving by getting them excited about purchasing something they really want but can’t get unless they sock some of that birthday or Christmas money away
-Make saving fun! Help your child create a fun chart where they can track how much money they’ve saved or help them design their very own “savings” jar where they can see their savings grow.
Natural Savers:
-Savers are motivated more by having money in their piggy bank or bank account than buying those new pair of jeans their eyeing at the store. To encourage them to enjoy the fruits of their saving labor, get them to be specific about their savings. Create a goal specific savings separate from their other savings that is to be spent on something they really want
-Introduce them to the clearance rack and sales! Make a big deal about how much they’re saving off regular price. Savers get excited at the thought of not paying full price!
While environment plays a huge role in how our children will view and handle money, learning how they are naturally wired to react to the dolla dolla bill will give us a better indication of areas we need to focus on when molding their young minds.
Which one are you? Take this little quiz to find out
Learn Early, Live Wealthy Principles:
-Treat debt like cancer and eradicate it fast!
-Don’t spend today without first considering tomorrow
-Earn to increase your giving more than your living
Learn Early, Live Wealthy 