Did you know that children as young as 3-years-old can grasp money and financial concepts like saving and spending?
Did you know that what we see and hear about money when we are very young children stays with us for the rest of our life
Research suggests that our money, spending and saving habits are formed by the time we are 7. Parents, carers and family members are the number one influence on children’s financial behaviours.
Some people call this time in a young child’s life the ‘Santa Claus Stage’.
The ‘Santa Claus Stage’ is a time in life, normally up to the age of 8 years old, when children believe almost everything that their parents, carers, close family members, school teachers – and even the TV and movies – tell them.
What all this really means is that if you tell your young kids – or that they hear you say – that money is evil or that money causes arguments then your children will spend the rest of their life unconsciously thinking that money is bad and creates problems.
What thoughts and feelings about money do you remember from your parents, grandparents and TV from when you were a young child?
Money is the number one thing that most couples and families argue and fight about. Money, debt, shopping and overspending is a biggest source of tension in most modern households. Especially because 33% of Australian households are living pay-cheque to pay-cheque.
Aussies no longer have a saving money mentality, our spending is driven by the desire to live in the moment and to portray the lifestyle we ‘think we should have’ and our ‘buy now, pay later, you deserve it’ thinking, which now has millions of us trapped in debt.
- How do you talk about money with your partner?
- What are your children learning about saving money from you?
- How do you talk about spending money at home?
The best solution is to explain to your kids the importance of making good choices. My parents and grandparents were all entrepreneurs who taught me the value of money and having cash savings at a very young age.
They didn’t say, “Do you think I’m made of money?’ but instead they would say “As a family we need to make choices about how much money we save and how we have available to spend”.
Here are my 5 Top Tips to help you raise your kids to learn good things about money, cash savings and spending so that your children are Underspent not overspent.
1. Don’t say
Do you think I’m made of money?
We need to make choices about how much we spend and save.
2. Don’t say
Money doesn’t grow on trees.
When we save money, our money grows.
3. Don’t say
It’s better to be happy than rich.
We can be happy by saving some money and spend some money.
4. Don’t say
Money is the root of all evil.
If we save some money we can use it for good things like a holiday.
5. Don’t say
That was a terrible mistake but we’ve made our bed, now we must lie in it.
We may need to think about and then wait to buy somethings we want.
What did your parents teach you about money? Share with us in the comments.