Wanting to look after your family is one of the most natural impulses in the world, and that’s one reason why you’ll want to make sure your finances are in order, so you can provide for them after you’re gone.
But another way to help your loved ones is to instill good financial habits into them early on in life, so they’re in a stronger position to achieve their goals in the future.
So where do you start?
Your children will start gaining an awareness of what money is early on in life, perhaps because they’ve pestered you for a toy or gadget and you’ve told them you can’t afford it.
This is the perfect opportunity to start teaching them in more detail about the value of money, saving and how you manage your various expenses, from paying household bills to paying for luxuries and non-essentials.
Encourage them to save
You can get your children actively saving money from an early age, from giving them a piggy bank or opening a Junior ISA.
Set a good example
If you want to instill good financial habits into your children, you’re in a position where you can give them a positive example to follow.
If they can see you actively setting a household budget, weighing up how to spend your money and thinking about the choices you make, it will hopefully become second nature to your children, and they’ll grow up emulating your actions.
Set financial goals
You’ll have various financial goals in mind, from making sure you can afford a family holiday to paying for a future wedding.
You can encourage your children to get used to doing this by suggesting they set goals for whatever they want to buy. It doesn’t have to be on a large scale. For instance, it could be a holiday with friends, a night out, a new smartphone or a laptop. But even so, it will get them used to the idea of making sure they’re able to pay for things before they buy.
Teach them budgeting skills
When your children are starting to earn their own money, perhaps because they have their first Saturday job, sit down with them and teach them how to budget.
Show them ways of tracking their income and outgoings, so they can see what spending must be prioritised and how much money they have left for discretionary purchases.
If you have any questions about managing your finances and helping your family become more confident about managing their money, please feel free to get in touch and we’ll be happy to speak with you.