Maintain your finances seems to be one of the toughest tasks for every family. Right? A couple of the most significant factors which influence this fact are often not having enough income and having kids. Yes! Kids really make our lives special but they don’t make the household budget any easier. There are a lot of different dynamics between parents and children which matter a lot when it comes to finances.
However, children can even really make a visible change to your finances in two ways! According to the Journal of Economic Psychology reports, an improvement in managing the finances of any family comes as a result of being in debt and arrival of a new child. So, it won’t be something absurd if you thank your little one for getting your finances in order.
Children even allow you to look at things in a different way. You will definitely not let your 5-year old darling to set up your budget. But, a somewhat offhand comment could make you think more about what your plans exactly accomplish.
Moreover, more than 97% of parents bear an idea of letting their children get post high school education and 79% among them expect to pay for at least a part or whole of that education. To create a budget which seems to be helpful and take into account your future expenses can partially be attributed to having children.
This is what your kids do to you! But, there are multiple reasons one should focus on teaching their children the utmost financial principles regularly.
Parents seem to be quite helpful on what their children believe in terms of finances and of course their behaviors. If you are a parent then you can very well influence the attitudes of your children about money, reinforce those attitudes successfully through your constant behavior and last but not the least the kind of parent that you exhibit can be totally visible in your children.
Although children have the capability of learning a lot simply through the observation and indirect actions it is an obvious fact that a kid’s financial knowledge is linked with their parent’s financial knowledge to a great extent. However, this process doesn’t stop even after they become old enough to move out of the house.
As per Hartford, 70% of college students claimed that their parents are the prominent source of financial information for them. Proper communication helps children to learn how finance actually works.
If the parents do so then it ultimately alleviates two of the biggest worries that parents often have. What kind of worries? Well, Charles Schwab found that 93% of parents with teenage children worry that their kids will end up making bad financial decisions like overspending or simply living beyond their means later in their life. So, healthy communication could be quite helpful.
This is not the end! There’s another worry that exists among the parents. Do you know what it is? Well, it’s nothing but ‘the talk!’ But it has been observed that more than 70% of parents usually usually feel more comfortable giving advice about investing rather than talking about the birds and the bees.
Having conversations, or just involving teenagers in the financial decisions of your family, can really go a long way while passing along some of the perfect financial habits and knowledge to your children. You certainly don’t have to be an expert to help your kids learn about family finances.
Actually, there are huge benefits of having an open-end communication about money with your kids. As per a study in the Journal of Consumer Affairs, it has been observed that girls who communicate with their parents more end up reading more product labels. In such a way, getting them involved in the finances can lead to your children understanding what’s at their disposal than if you weren’t.
So, at the start of a month, sit down with your kids and discuss the finances and monthly expenditure in some way. Always teach them something that they are not aware of and make the plan of getting them involved in the family’s finances. In doing so, you’ll be definitely rewarded in the long run with children who make great financial decisions.
About Author: Arina is the marketing manager at CouponsMonk.com, deals and discounts provider company. She is passionate about money savings, investment and children psychology, and relationship. In addition, Arina also supports non-profit agencies that provide healthcare solutions to handicapped and disabled people. Photo by Sebastián León Prado on Unsplash