Childhood experience and relationship with money – How this can affect your pocket!

Did you know that parents' financial behavior influences their children's relationship with money?

A financial education Since childhood, it is essential for the relationship with money to be healthier.

The teachings help children acquire knowledge and understand the importance of saving, so that in the future, they can become good investors and make their dreams come true.

If you want to teach your children to understand more about the world of finance, you also need to set good examples regarding the use of money.

To find out more, read on.

How do parents influence their children's financial behavior?

Children acquire many habits through observation and imitation.

In other words, when they observe their parents and their relationship with money, they understand that this is the right way to manage finances.

Therefore, it is essential that parents set a good example. After all, they can even influence their children's consumption habits in adolescence and adulthood, because of the examples they set in childhood.

Parents, in this case, are agents of financial socialization, since even unintentionally, they show how money works.

In fact, even if you avoid talking about money, your beliefs and behaviors regarding finances will affect your little ones.

When children see their parents cutting out this topic, they understand that talking about money is not a good thing. 

But we know that this is not the case. Talking and sharing financial knowledge is a way to help your child understand the basic principles of economics and acquire good examples.

Did your childhood affect your relationship with money?

You may not even realize it, but some of your financial habits were influenced by your parents or people close to you when you were a child.

The thing is, children, as they still don't understand much about economics, pay attention to their parents' advice and habits.

Parents' behavior has a great influence on a child's life. Even when a child grows up, it is natural for some of the habits they acquire to continue into adulthood.

But if you've realized that your relationship with money isn't as healthy as you'd like, we have good news: there's always a chance to change.

Realizing that there is something wrong with your finances is the first step to improving the situation.

As adults, we are able to understand very well the importance of creating a emergency reserve, invest money and consume consciously.

However, remember that it is not enough to just know that you need to change.

If you really want to have a healthier financial life, you will need to have the willpower to put new habits into practice.

Financial education in childhood: 4 habits that parents can encourage

To prevent children from having difficulties with money, parents need to take seriously the importance of children's financial education.

As you can see, the way parents handle money can influence their children's lives.

Even if you didn't have good examples in your childhood, you can change that reality for your children.

And to help you, we will show you some ways to practice financial education with children:

1. Show the value of money

Talking about money is important. The problem is that this topic can be very vague for children.

They need to understand the value of money before they reach adulthood.

Since they don't yet make financial decisions, it's normal that they can't understand exactly how much an unnecessary purchase can affect their budget.

For this reason, it is important to show the value of money in a practical and simple way.

Make it clear that the money you earn is the result of your work and therefore needs to be spent consciously.

2. Be a good example

In order for your children to have a good relationship with money, it is necessary to set a good example.

This means that parents also need to value finances and adopt healthier consumption habits.

If parents do a lot of impulsive purchases, are in debt or constantly complain about the lack of money, children will absorb these habits.

There's no point telling your child that saving money is important if he sees his own family members doing the opposite.

There is a greater chance of your child becoming an adult with an investment mindset and knowing how to put their financial education knowledge into practice if they have good examples from an early age.

3. Set an allowance for your children

Allowance teaches children to manage their own budget.

It is recommended that the allowance amount be set according to your child's expenses and that it always be tied to certain obligations, such as getting good grades, making their own bed, etc.

This value, as you know, aims to show children the importance of managing their own money.

So, if you notice that your child wants to spend their allowance on something you don’t think is appropriate, try not to interfere too much. After all, this is also an important time to teach them to make good decisions.

4. Give a piggy bank as a gift

The piggy bank is an old way of encouraging the habit of saving money.

You can also encourage your children to set goals for the amount of money they save.

Such a simple habit will encourage them to save more and pursue their dreams.

With the piggy bank, the child can save money to buy a new toy, for example.

When the goal is achieved, congratulate the child and recognize their effort!

Conclusion

There is no doubt that the relationship with money in childhood can cause a child to acquire good or bad financial habits, which will remain in adulthood.

Therefore, teach your child from the beginning to save and spend money consciously.