Page 81 - Book2E

Money often plays a pivotal role in one’s self-concept, self-esteem, and sense of intelligence. Consider what emotions might be motivating your child’s money management decisions.
Learning to Say "No"
Parents can help children become good money managers and respon- sible consumers by teaching them money management skills from an early age. Financial education should be based on the needs, interests, and abilities of each child.
Children develop their financial attitudes and behaviors by what they see their parents do and not by what they’re told. Actively encourage good values. Teach your children responsibility and the value of work. Teach them to save towards a goal of a new bike or video game; let them know that even you have things you want and cannot have.
Even parents who are able to buy their children everything need to be careful of overindulgence. By fulfilling every whim, you may deny your child of several things: appreciating things that cannot be bought; being motivated to work hard; persevering through obstacles and frustration; setting long-term strategies for savings, and achieving a hard-won goal.
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1 . If You Fail to Plan, You Plan to Fail
According to the Indiana Department of Financial Institutions, researchers who track spending patterns report that children and teenagers spend about $200 billion dollars a year and influence another $250 billion dollars of household purchases. Children can develop positive attitudes about money by learning how to plan their spending to meet needs and financial goals. If a parent is too quick to rescue a child from financial trouble, the child doesn’t learn the consequences of overspending. Young people who have money
Teaching Children About Money 73