Financial Well-Being Tips to Teach Our Children07 May 2019 4 min read
Our relationship with money is shaped from childhood. As children, we are exposed to the financial habits of our family, just as we are exposed to other habits such as exercise and diet, both good and bad.
As parents, teachers and caregivers, we all have a role in shaping the next generation and arming them with the tools and knowledge to build a healthy life in all aspects including financial well-being.
There is a proven connection between financial well-being and mental health; we believe teaching our children about financial well-being will provide the foundations of a healthy and secure future.
In the interest of living an active, happy and full life, we want to share some financial tips that all mothers – or any influential adult in a child’s life – can share with their children to give them the best head-start to achieving financial well-being and security throughout their lives.
Don’t blow a bonus: Be wise and you will benefit
When we come into ‘extra’ money, whether it be birthday gifts, your first job, or you receive a pay rise, it can be hard to not to get carried away thinking of all the great things we can spend our new money on. More often than not, saving and investing your extra money is not on top of this list.
Remember you can only spend your money once, so if you were to invest or save that additional money rather than spending it, it could make a world of difference in achieving your financial goals.
Always save at least a portion of any ‘extra’ money and put it somewhere it is difficult to access; eliminate immediate temptation to deliver a bigger reward in the future.
Expect the unexpected
In life, unexpected events occur. Your car could break down, your washing machine could die or opportunities, such as tickets to a festival or an overseas trip, will fall into your lap un-expectantly and whether you’re financially ready for these small life interruptions and celebrations will make all the difference to your stress levels and quality of life. Your financial well-being will determine how you manage the unexpected.
Have a savings target (which will be age and life-stage appropriate), but once you’ve reached your target, don’t stop there, work on increasing this figure each month.
Having your own personal financial security can be liberating and having a sense of financial freedom can be priceless.
Don’t be afraid to spread your wings
Money can often be a taboo topic, but it’s important you are brave enough to challenge the taboo and talk about money. Talk to more people about money; talk to friends, your family, teachers, experts etc. Having real conversations about money will educate and empower you. Regardless of what stage or age you are in your life, it is important to feel comfortable asking for information and help. When you stop asking questions you will stop learning.
Understand and challenge your attitude towards financial risk, savings and investment so that you can be in control and make informed choices about how you save and grow your money.