It is far more frequent that money conversations in families are based on negative situations and the stress and anxiety brought on by not having enough money to meet certain needs, than on the positives associated with money. It is not unlikely then that those children raised in such households, stand to develop similarly negative attitudes towards money.
But all hope is not lost.
Parents, regardless of their actual financial situation, can instill key financial principles, through lessons and practice to help their children adopt a positive approach towards managing money and building wealth.
Teach Financial Literacy at an Early Age
Dr. Beverley Goldson, Psychologist at Family Life Ministries, speaking at the latest episode of VM Group’s Making Moves series, under the theme: Building Wealth from the Cradle, said teaching children financial literacy at an early age is the best thing parents can do in raising financially secure adults, noting that this can help break the cycle of poverty in many homes.
“Even though times are hard, and they may not have much money, parents can still teach their children about saving,” she said. Dr. Goldson encourages parents to be open with their children about how money is used, the mistakes that they have made in their approach to managing their finances and what would be better choices to make.
She shared some important tips for parents:
- Build a positive relationship with your children to ensure there is love and trust, which will allow them to adopt the lessons you are sharing.
- Teach your children to delay gratification, by recognizing that they do not have to get everything they want immediately but can instead save towards longer term goals. This also helps to promote self-control.
- Set the tone by practicing good money management principles yourself. Your children will live by your example, if they see that you are taking steps to improve your financial status, for example, through savings and investments.
- Give your child an allowance or a simple way to earn funds around the home, through chores. When they have funds, this can help them to value what they earn and learn how to spend and save wisely.
- Share financial experiences with your child. For example, take them shopping with you, so they can understand how you select products to purchase based on what is economical and what fits into your budget.
Start Saving Now for Your Child’s Future
Sasha-Gay Wright-Wilson, Branch Manager, VMBS Spanish Town, says parents should start saving now for their children’s future.
She said ideally, as soon you start planning to have a child, you should start preparing for your child’s financial future. For example, for the baby shower, instead of accepting just clothes and other gift items for the baby, ask your friends and family to deposit cash in an account set up for the child towards their future needs.
“However, if you didn’t start then, you can start now. Every mickle mek a muckle,” she added.
Two ways you can save for your children at VMBS include:
- Save2Grow plan – VM Save2Grow offers three specially designed savings plans that are geared at encouraging primary, secondary or tertiary level students to save while they pursue their education and also gives them the opportunity to qualify for scholarships, bursaries and grants to further their education.
- VM iSave – This is a special contractual account that helps persons remain committed to saving towards a specific goal.
Learn more by heading to our website or visit a VMBS branch to get started.