Household habbits that work

My final missive on teaching kids about money......

Creating the right home environment for your kids future success with money

I’m asked a lot about what to do in this regard. It’s actually straight forward but takes a little bit of self-discipline (on your behalf). It’s also a crucial part of teaching your children- a supportive money environment.

Life from our parents’ generation has changed dramatically and mostly for the good. We all however tend to bring some of the good and bad parts of their beliefs into our own. What you will read may challenge some of these.

First; they must see you every week both casually and formally discussing money, business and investing. Even if they are just in the background. It must be done constructively of course and an absence of domination or dictation (by the father) or submissiveness or victimisation (by the mother). This may require a big shift in your own relationship with money.

Me? I’m awful at household accounting and expense management- my wife, she is simply brilliant. I’m good at investing and we are both good at earning income. We still have roles for clarity and to leverage our strengths, but we always include the other in our roles.

Second, TV and computers aren’t always ‘on’. Books and magazines are lying around the house on money and successful people with money. And they are discussed over meals etc.

Third, regular meal times where everyone sits at the table with no phones or TV. This has huge benefits in more than just money with kids. It provides a natural time to discuss and listen to their questions. Never lecture and keep answers simple. A professional or self- employed person? NOTHING at work is more important than this. Even 3 nights a week is a good start. Commit and prioritise. Most men that say work holds them at work are lying to themselves.

Fourth, they include their kids in money conversations, they ask their opinion on holidays and the amount to spent on them for example, in a renovation or a house move. They openly ask them is it worth it? Then they listen.

Five, they see their parents make decisions and then follow them. Importantly they hear about the result because their parents tell them about the impact of what they did- including their mistakes. In all this they learn about the confidentiality and trust that surrounds money. Start learning this inside the family home.

Six, they keep it tangible. Money is not best learned via electronic digits and symbols on screens. Folding cash, writing entries into a spreadsheet and physically withdrawing rather than ‘swiping’ is key. It’s much harder for them to learn money’s value when it seems like an intangible that just requires a piece of plastic or even just a watch! The physical experience of handling cash for expenses with them is important.

Last, they are hardened up! They don’t put their past baggage in their kids via taking emotional comfort in being weak with money. They also follow through on what they do, and they are disciplined. Across my last 3 true stories you will see how these played key roles in teaching children about money.

Love your kids, really love them? Then apply these 6 actions in your house. They work.