In light of Mother’s Day, I am re-publishing a popular post from last year.
With Mother’s day coming up, we all reflect on what our mom means to us and all the things she did for us as we grew up. Making family meals, helping with homework, answering relationship questions are all important ways we may remember our moms.
Another big influence that many of us never consider is the influence our moms have on our financial knowledge. According to a study by T. Rowe Price from 2014, 58% of kids go to their mom first with their financial questions vs. only 39% going to dad.
So moms, with such an important job, what are some tips to allow you to be an even better advisor and role model for your children as they learn about money, spending and finance?
- When you are shopping with your kids, let them see you look at prices and compare your options. Ask them about prices on things they want to purchase. Consider using coupons once in a while. Talk to them about what coupons are (free money).
- Talk about saving and investments when you are with your kids. The dinner table IS a good place. Money should not be a secret to your kids. If there are times where you cannot afford something, that is ok. It is also ok to let your kids know that. Life is full of choices and trade-offs. Learning that lesson early is a good thing.
- Let your teens manage their own budget. In our house, we give our older teen a lump sum 2 times a year and put in in his bank account. The amount is what we would have spent on clothes and his allowance. He then has 5 months to “use” the money as he wishes. If he chooses to spend more on fast food (taco bell is a favorite), he has less for clothes and fun. However that is his choice. Stick with it and if they run out of money, do not replenish. It is a lesson they will need. (The other months he has to work and make some money to fund his spending).
- Spend on Fun. If your children only see saving and sacrifice, that is not a good lesson either. When you do fun things like take a trip or do something special, remind them that you are able to do that because of the wise choices you made on other spending areas.
Good luck Mom! There is more to come, look for the next conversation on how a Mother’s influence guides a family financial decision making and goals in life.
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