Fostering a healthy approach towards money is an important part of achieving a balanced and positive lifestyle for all of us. If you’re a parent, it’s also a key to raising happy, financially independent kids.
How you approach money is shaped by many factors, all of which combine to create your own individual ‘money personality.’
Your relationship with money begins in childhood, as you observe how your own parents and other influential adults interact with money. Every child sees good and bad examples, but persistent trends and large eventful experiences stick with you, setting the foundation for your own personal lifelong outlook and relationship with money.
Of course, the same dynamic applies to you and your kids. Modeling responsible financial behavior will help to encourage a positive approach to money as your kids grow, observe, and learn from you.
Money means different things to each of us. The money myths you believe in all have an element of truth to them e.g., that money equals freedom, security, pleasure, and so on, and they get passed on to the next generation.
It’s important to try and avoid emotionally-driven financial decisions. Focus on teaching your kids that the best financial decisions are those founded on reasoned and educated choices, ideally based upon core family values.
There are many different types of money behaviors. Each has both positive and negative qualities, and each type influences your financial and investment decisions. Typically, you will embody more than one type.
Whether you’re a successful saver, or a spender who enjoys living in the moment, balance is key. Implementing a sound financial plan can help you enjoy the freedoms that your assets provide, while also preparing you and your family for significant life events.
If you have a partner, remember that your kids will learn by observing how you approach money, both independently and together. Even if one of you accepts primary responsibility for household money matters, it’s important for you to both be active participants in what you teach your children and how you work together. Good communication skills and cooperation avoid turning money into a source of conflict, and ensure that decisions support both individual and family objectives.
Understanding your unique money personality can improve your own financial wellbeing, your relationships, and the understanding of money that you convey to your children.
Click HERE to take Olivia Mellan’s Money Personality Quiz.
- ‘Enriching Your Life: Your Relationship With Money’ – SageVest Wealth Management
- ‘Cash And Couples – The Six Cs Of Success’ – SageVest Wealth Management
- ‘Money Harmony: A Roadmap For Individuals And Couples’ – Olivia Mellan
- ‘The Confidence Code’ – Katty Kay and Claire Shipman
- ‘Beating The Midas Curse’ – Perry L. Cochell and Rodney C. Zeeb