When we become parents, we become role models in all walks of life, and finances are no exception. Suddenly, you’ll have someone watching your every monetary move, and probably mimicking the behaviors you’d rather they didn’t notice. To make sure that this copy cat behavior doesn’t embarrass you as much as the bad word your youngster said at the school gates last week, we’re going to help you understand whether you’re the best financial role model you could be with three simple questions.
Do You Have Any Savings?
Savings are fundamental for gaining control of your finances, so it’s probably no surprise that they appear first on this list. The simple fact is that kids of savers are way more likely to save themselves, both because they’ve mirrored this behavior, and because their parents are more likely to set them off with sizable saving pots, etc. With the cost of cars, technology, and real estate rising at worrying rates, savings are set to become even more fundamental for our future generation than they have been for us. Luckily, you don’t need to save a small fortune to make a good impression here. You simply need to set money aside each month, and ensure that your kids feel the benefits of your doing so.
Do You Always Shop Around?
A survey by Magnify Money found that consumers spent as much as $254 on impulse buys over just a 30-day period. That’s a lot of money and, to make matters worse, upfront purchases could see you with an item you don’t need, or something that you spent way over the odds for. A positive role model should always do a quick Google search in line at the store, or leave that shiny new vehicle they’ve just driven past to check out more affordable alternatives on used car sites like automaxhyundai.net. This way, kids are less likely to spend money as they earn it, and more likely to make informed, worthwhile decisions.
Do You Avoid Throwaway Culture?
As can be seen from articles like this one on grist.org, our propensity to buy the newest or best has given way to a host of disposable products. This is bad news for our kids for two reasons – not only does buying the newest iPhone as soon as your contract allows make a throwaway outlook more likely to pass down, but it also helps to create a world where nothing is built to last. Instead, ensuring that the purchases our kids make are worthwhile means showing them that quality is always better than quantity, preferably through the purchase of higher-priced items that can last for their entire childhoods and beyond. Then, when they’re old enough to buy household items, etc. themselves, they’re far more likely to adopt this same longevity outlook.
These are just a few key ways to send the right money message. Instead of letting the pressure of being a financial role model get on top of you, it’s time to start answering these questions in the right way today.
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