Our growing anxiety may stem from our beliefs around money and the uncertainty of what the future will bring for our children. As a parent, you are the primary influence on your child’s financial behaviors. That fact can provide you with a sense of power, but may also leave you with unrecognized, chronic anxiety.
Resolve anxiety related to finances
According to the National Institute of Mental Health, anxiety is the most common mental-health disorder in the United States affecting nearly one-third of both adolescents and adults.1 Rather than passing this anxiety along to your child, consider resolving the underlying causes that may be related to finances.
Practice money management with your kids
You can help your kids practice money management activities on a regular basis beginning as early as age three. A University of Cambridge report revealed that kids’ money habits are formed by age 7.2 We can help. If interested, Blair Wealth Management is offering a limited number of private workshops free of charge for parents with children ages 3-18 years. Contact Mark Blair for details.
“All knowing is doing. All doing is knowing.” – Humberto Maturana
Below are some key concepts to help you get started.
- Delayed Gratification. Teaching your child to wait and save for something she really wants can improve her odds of future financial success.3 This lesson can be learned as early as three years of age. When habits are formed at a young age, she is more likely to continue the practices throughout her lifetime.
- Wise Decisions. Help your child make smart choices with money as he develops the understanding that it is available in finite amounts. Set up accounts for saving, spending, sharing and attaining specific goals to aid in the critical development of decision-making skills.
- Early Saving and Investment Practices. The earlier your child begins to save, the quicker he will see his money grow. He will shift from saving for short-term goals to long-term goals and benefiting from compound interest. Next, investing will open opportunities for capital appreciation and dividends.
- Advanced Planning. College and career planning both involve financial considerations. Discuss these areas by the time your child enters ninth grade. How much can your family afford for her college education? How will she contribute? Explore other options to finance college.
- Limited Credit Card Usage. Defer credit card usage unless your child can absolutely pay off the balance in full each month. It’s too easy to accrue debt negatively impacting his credit history and making it difficult for him to purchase a future home or a car, or even get a job.
Wise money management is an important building block to a successful life and is heavily influenced in childhood. With experience in this area, I’ll help you and your child work through various lessons. Contact me, Mark Blair, for details. Call 610.908.6271. The pilot program is free of charge and without obligation to families who qualify.