As important as it is to save money these days, it’s also important to get the next generation thinking about saving for their own futures. Here are some tips for parents:
Be a role model:
“If your children see you buying whatever you want, and worrying and arguing about money and not talking about saving for the future, it’s not hard to predict what kind of financial behavior they will exhibit,” said Jim Roberts, a professor of marketing at Baylor University who studies compulsive buying.
Practice:
Allow them to make spending mistakes they regret, and occasionally let them run out of money.
Jars:
Successful allowance systems often allocate money to jars (envelopes, etc.), typically labeled spend, save and give jars. It’s a simple way for children to budget for current expenses, long-term goals and charitable donations.
