What can you do to help your children of any age develop good money habits and make better life decisions? The key idea is that good decisions come from experience, which of course comes from having made mistakes. So how can you keep the mistakes small while still permitting them to learn?

Teach them as early as possible how money works – that it is finite, that you can spend it only once, etc. Do this by setting aside some money for them, more limited at first, and giving them gradually more input into how the money is spent. Establish firm, general guidelines, but let them figure out the details. Make sure to stick to those guidelines, or they will learn the wrong lessons.

If you want to encourage your children to save for the future, designate some of your gifts to them for that purpose. In order to teach them the joys of sharing their money with others, let them experience that with their own money. Sometimes partnering with them in their saving or sharing may encourage them to do more.

For children of any age, communication is critical. Answer their money and life questions as truthfully as you can. You will teach them and strengthen your relationship with them.

Please contact us for more information on this topic.

Mark Fischer, Certified Financial Planner
Fischer on Finance
7301 Ohms Lane, Suite 365
Edina, MN 55439
Phone: 952-881-4696
Fax: 952-881-4534

Securities offered through Multi-Financial Securities Corporation, member FINRA, SIPC. Fischer on Finance, LLC is not affiliated with Multi-Financial Securities Corporation.