Do you give your kids an allowance for a job well done?
Do you put money into their birthday cards… a dollar for each year?
It’s amazing how kids can accumulate hundreds of dollars for just having a birthday.
When your children get money, what do you encourage them to do with it?
Do you encourage them to take a trip to the store, or to save it all to make a big purchase?
While they are still young, it may seem fun to allow your kids to buy things with their pocket change, but encouraging your child to spend all of their money can ruin their financial future.
Just hear me out…
In our adult lives, we typically duplicate the patterns and habits that we were conditioned to while we were growing up. If your mom used salt and pepper to season her fried chicken, then that’s what you will likely use.
If she used a little Old-Bay seasoning because she was from Maryland then you will do the same.
And if she used a little buttermilk in her batter because she was from Louisiana then you won’t fry chicken without it either.
What you were conditioned to do as a child is what you will most likely do as an adult.
So when we encourage our children to spend all of the money that we give them (whether it be incremental or all at once) we are producing spenders.
Spenders are not financially stable.
It is the spenders who may struggle with gaining the discipline to save. Spenders are the adults in debt. Spenders may have the latest model car but no wealth built for the future. It is the spenders who make hasty money decisions.
Spenders gotta have what they see.
Spenders make savers and investors wealthy.
Don’t raise spenders, raise financially literate wisemen. Let’s teach our children how to handle money now. When they earn or receive money, show them how to spend some, save some, and share some.
Because your child has zero bills to pay, they should be putting away at least 50% of their income. When they are young and single adults, you will be glad that you encouraged this discipline.
Instead of unknowingly sabotaging your child’s financial future by letting them spend, spend, spend, raise them with financial soundness. Cultivate the discipline of wise money management while they are still young.