You want your children to learn about saving, smart spending and other money-management skills. You want them to learn about the value of money and the difference between wants and needs. If so, you must start by setting a good example yourself.
Pay bills on time: When the bills arrive, don't throw the envelopes into a pile that collects unopened on the counter for days (or more). Open them and review the statements and make sure to send your payments by the due date.
Set a monthly budget: Crunch the numbers so you can control your spending and have a steady cash flow instead of running low on funds until your next paycheck.
Limit impulse spending: When you go out by yourself or with your kids don't buy things that you or them don't really need just because it was on sale (or they nag you until you buy it).
Discuss family finances with your kids: Depending on their ages, you can talk about some money decisions with your kids from the time they are quite young. For example, let them know how you plan to save up for a family vacation. When they are older, they can participate in conversations about bigger decisions, such as looking for a new apartment to rent or house to buy.
Money is an emotional issue and we learn our attitudes about money from our parents. Even when a family doesn't talk about money, kids are learning from watching their parents manage the family's finances. The most powerful form of education, and the hardest, is to teach by example. When it comes to money management actions speak louder than words!
Yamila Constantino is a pioneer of financial education for Latinos. She is a member of the National Financial Educators Council Advisory Board and a winner of the US Hispanic Chamber of Commerce At the Table award for women entrepreneurs.
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