As parents, we do everything in our power to love our kids well. That includes setting a good example in all areas of life, including our finances. Financial success looks different for every family, but there are examples, habits, and practical decisions we can make to help facilitate strong financial foundations for our kids. Making smart money choices with your family can be intimidating, so here are 3 areas in which you can set your child up for financial success.
Lead by example with your family’s finances
Kids learn more from what they see in you than what they hear from you. Be mindful of excessive spending and impulse purchases, especially in front of your kids. Including your kids in the conversation can go a long way in educating them about handling money. Be open about bills, financial goals, giving habits, and ways you save money as a family. This will allow them to be comfortable in these conversations in the future.
Give your kids hands-on experiences
Your kids can have a budget, too! Teach your kids the spend, save, give model: whether your kids are given an allowance, or earn money by doing chores, they can learn to spend, save and give. You can determine as a family what percentage of their earnings will go where. Using a clear jar for each area can be a good motivator! It will allow them to see the impact of their saving and spending as they literally watch it grow. (This Chore Chart is a great system to help your kids earn money around the house and learn appropriate money habits in their everyday lives.)
Playtime is another excellent opportunity to teach your kids responsible money-handling skills. Using pretend money can give your child a tangible way to gain an understanding about spending and saving.
You can help your kid build motivation to save for the things they want by creating a fun chart to track their savings. Print out a chart or have them draw their own picture to color in as they save more toward their goal. This helps to build the habit of saving, but it also teaches your child to spend time considering what they want to buy so they can decide if it’s really worth their money.
Be affirming of responsible decisions
Use simple, understandable phrases to express the thoughts and values you want to pass along to your kids. As they hear you say things like “I’m happy I saved enough to get that new couch,” or “I am content because I managed my money and paid my bills,” your kids will internalize these truths and remember them as they grow up.
Planning for the future
It can be difficult to think about what happens to your wealth and assets after you’re gone, but the sooner you start preparing for the future, the better off your child will be. Here are some ways to set your kids up for a more secure financial future:
Estate Planning is an important way to care for your kids and set them up for financial success in the future.
Financial Peace University is a life-changing 9-week program that takes the knowledge of the Bible and turns it into real action in our lives. When we create plans and systems in our own finances, we are leading our kids to a more financially successful future.
Check out our LCBC Financial Coaching Ministry for a personalized, one-on-one program to learn more about biblically based money management principles and techniques.
The best way to apply these principles is to model them! Our kids have a front-row view of how we spend, save, and give our money. When we are diligent in trusting God with our finances, he will provide for us. Check out our Personal Finance Resources to help you steward your finances well!