A quick tip from Lynnette Khalfani-Cox, The Money Coach®
Many financial experts believe that people who learn good spending habits at an early age are more likely to carry that sense of fiscal discipline into adulthood.
So, what can be done to help young people grow into smart spenders?
One key is to teach children as early as possible to focus their spending on their needs and not their wants. Granted, this isn’t always easy. Young people not only see what their friends and neighbors are doing, social media allows them to glimpse into the lives of celebrities and strangers.
These influences can often skew your child’s perception of reality. Explain to them that food, clothing and shelter are the basics needs while extras like cell phones, bikes and toys are wants.
Research published by the World Economic Forum reveals a surprising finding: many children develop their saving and spending habits by the age of five!
Even if your child is well past the kindergarten years, it’s not too late. Start encouraging them to spend first on their needs. This mindset can facilitate saving money and become a way of life.
When you click on external links, you are linking to alternate websites not operated by SchoolsFirst FCU, and SchoolsFirst FCU is not responsible for the content of the alternate websites. The fact that there is a link from SchoolsFirst FCU’s email to an alternate website does not constitute endorsement of any product, service, or organization. SchoolsFirst FCU does not represent either you or the website operator if you enter into a transaction. Privacy and security policies may differ from those practiced by SchoolsFirst FCU, and you should review the alternate website’s policies.
Extra Credit provides general information to help improve our Member’s financial lives. Every situation is different, so please contact us for guidance on your specific needs. The advice provided in Extra Credit is not intended to serve as a substitute for speaking to a loan representative or financial advisor who can help tailor a solution for you.
If you post a comment, we will make every effort to respond or contact you directly. We reserve the right to delete comments that contain personal information, unauthorized content, or are generally inappropriate.