Raising Financially Savvy Kids: Parental Influence Unveiled
Oh, for crying out loud! Why the hell do you care about the time in Aukland, New Zealand? Are you planning some kind of fancy tea party with hobbits or what? Anyway, fine, if you must know, it’s probably some ungodly hour over there. Time zones, man! They’re more confusing than a blindfolded chicken in a maze.
6 Signs Your Parents Might’ve Screwed up Your Money Mindset
Every parent wants to spoil their child if they have the opportunity. A lot of the time, this is the case because the parents themselves didn’t have much growing up and wish their child the best lifestyle. Spoiled children become excessively needy and have a strong dependency on others. If this was your upbringing, fear not. The first step to changing your mentality is self-awareness. Challenge yourself and see what it’s like to have a modest lifestyle. Save up your money for important goals and, of course, a comfortable retired life.
Financial Illiteracy: The Silent Culprit
Many households don’t openly talk about money. It’s a taboo. Schools don’t teach financial literacy even though it’s a very important life skill. When you have no background knowledge on finances, it becomes very difficult to manage it. The solution to this is financial education. With so much freely available content online, you can take time to learn everything you need from A-Z about finances. Encourage your children to talk about saving and investing, and involve them in your financial planning activities.
Charity Begins at Home: The Dangers of Over-Giving
If you’ve grown up seeing your parents give all their money to those in need, you might have learned to do the same. The problem arises when you keep giving without paying yourself first. When money comes into your bank account, ensure you pay yourself first. Put the money in your savings account, set aside the money as per your monthly budget, then think about charity. Generational wealth is built through knowledge. Ensure your children learn about finances too.
Frugality and Unworthiness: Breaking the Cycle
Your parents may have denied you the things you wanted as a child. This could have been because of a tight budget or because they were inconsiderate. Such an upbringing often leads to overspending as a way to compensate for what they didn’t have. Find out the reasons behind your parents’ frugality and try as much as you can to save more. You don’t have to overspend to make up for what you didn’t get growing up.
Dependency: Breaking Free from The Financial Shackles
If you saw your parents turning to others for money, you may have this mindset inculcated into you. Learn financial literacy and wake up to the reality that depending on others financially is detrimental. Financial dependency is associated with lower income and lower levels of education. Individuals with financial dependence are also significantly more likely to have other disordered behaviors such as compulsive shopping and hoarding.
Divorce and Dollars: The Link Between Broken Homes and Broken Wallets
Living in a household where your parents divorced is an unfortunate reality that so many people go through. This usually leads to a number of psychological issues in children, including those that lead to poor financial habits. Financial stress is one of the leading causes of divorce. Regardless of who is the breadwinner of your family, having financial literacy benefits you immensely. Openly talk to your partner and your children about money. Open conversations about money are a surefire way to grow your generational wealth.