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Empowering Futures: A Guide to Raising Financially Responsible Kids

Empowering Futures: A Guide to Raising Financially Responsible Kids

BY: JW Rayhons

 No matter what your childhood was like, you want your kids to have a better one than you did. Have you ever heard the phrase, “there’s more that’s caught than taught”?  One of the greatest gifts we can give our kids is the knowledge and skills to navigate the world of money responsibly. In this guide, we'll explore practical tips and strategies for instilling a sense of financial responsibility in your children at any age. 

Your Kids are Watching:

Is money good…or evil? Your kids will have their first observations about money based on how you view money. Money is a tool, a resource; it’s neutral, until we put our perspective on it. Do you want your kids to have an empowering view of money? Money starts with mindset. Celebrate your good financial decisions and admit when you made a financial mistake. Let your kids see that money is simply a resource. It can be used wisely or poorly. And, we all do both. 

Lessons without Earnings are Empty:

When kids get paid for the work they do, they feel valued. Assign age-appropriate chores with correlated “wages” for a job well-done. This teaches children the connection between work and earning money. Language matters too. If you give your kids something without them earning it, call it “a gift.” If you provide them something they need, tell them, “it’s my responsibility as your mom/dad.” If they worked for it, let them know they “earned it.” Lessons stick when we live it.  

Money is just Math:

At any age, simplify. If you spend more than you make, you’ll run out of money; you’ll feel stressed, anxious, and fearful. We all know this, but do we teach and practice what to do?! Every time your kids earn money, give them the order of how to use it: Serve, Save, Spend.  

Serve – prove to yourself that you don’t have to have every dollar you make. Give some to someone or something you care about first. Now you’ll know you don’t need everything you make.  

Save – your money can make more money. You worked for the money so make some of the money work for you. Pick age-appropriate ways to save and invest.  

Spend – after doing the first two, now enjoy doing or buying what you want. 

Discipline = Freedom Start early and practice often (if it’s already past ‘early’ then start now). Consistency is more important than perfection. Habits drive our decisions more than we realize. Practice the above principles as often and regularly as possible. When you find yourself off-track, recognize it, admit it with your kids, and start practicing again. I wish you the freedom and joy and experience of a healthy view of money that comes from the discipline of practicing these fundamental principles.  

Your kids are catching how money is viewed and used in your home. By instilling financial responsibility in your children, you're equipping them for Life. The lessons they learn about making thoughtful financial decisions will empower them to navigate the complexities of ‘adulting’ with confidence and resilience. 

more to Life, than money™

The Rayhons Financial family is a team of professionals that want to guide you towards your ideal, joyful Life. A professional can help you create a personalized financial plan, provide valuable insights, and guide you through a better approach than “live and learn” or “trial and error.” Take a small yet courageous step today, simply go to RayhonsFinancial.com and connect with us for a conversation.

The content in this article was prepared by the article’s author. Cetera Advisor Networks, LLC does not endorse its content, and the views expressed may not necessarily reflect those held by Cetera Advisor Networks, LLC.