Mindset Hacks—How to Create a Healthy Psychology Around Money In Your Kids
Updated: Aug 4, 2019
A lot of people’s mindsets regarding money has a lot to do with how they were raised and how their own parents viewed money. We want our children to have a positive connotation regarding money but we also want them to have realistic views. When we fail to give them real-world experience, their views on money can be skewed and it would make it harder for them to attain any financial freedom. Here are some ways that you can help create a healthy psychology regarding money to your kids.
Share your stories. While kids hate being lectured about money, if you are able to speak to it and share some of the mistakes you have made with money, this will really give them something they can relate to. We are not perfect and we want our children to learn from our mistakes. Share what you do wrong and what you would have done differently. We should also share our money wins. Talk about things that you saved up for. When there is something expensive you would like to buy, even though you may have the funds to purchase it right away, take the time to show them that you are setting aside money for it.
Provide opportunities where they can earn money. When you give your child an allowance without working for it, it is hard for them to really feel attached to that money – especially if they know it will come around again next month no matter what they do. Give them a list of things they can do to help earn money. Provide them the opportunity to exercise those entrepreneur skills and help them if they decided to start a small business, like a lemonade stand. You may be surprised to find out creative they are when it comes to earning money.
Show them a real-world bill. Give them an opportunity to see one of your home bills, such as the electricity bill. Kids really don’t understand the concept of paying for things such as electricity because it isn’t an easy exchange at a store. When you show them the electricity bill, talk about how you can try to lower it. This can be a simple discussion as making sure you turn off the lights and not turning them on during the day. Give them the challenge to see if you as a family can lower it. It will be fun to see their excitement roll around when the next electricity bill arrives.