With over 20 years of experience as a financial advisor, Darcy Bergen is also the owner of Bergen Financial. Darcy has helped his clients through the years with their financial planning needs, such as planning from retirement, IRAs, Social Security benefits, and Fixed Index Annuities. Because healthy financial habits start early on, Darcy Bergen shares tips parents who want to teach their kids about money.
Examples to Follow
Darcy Bergen wants parents to know they have a more significant influence on the financial future of their kids than they know. Although it looks like children are not paying attention to the financial habits of their parents, they notice everything they do. When children hear their parents talking negatively or stressing about money, they will grow up with that stigma. Rather than stressing about money in front of their children, parents should help them build a healthy relationship with money from a young age.
Teach Children How to Earn Their Allowance
According to Darcy Bergen, children who earn their allowance tend to have a better relationship with money. Instead of giving children an allowance when they ask for it, parents should help them perform simple chores such as cleaning their room to earn it. It’s also a good idea for parents to deduct money from their allowance if their children don’t complete their chores. By teaching them money doesn’t come by unless they work hard, children will learn financial responsibility before reaching adulthood.
Avoid Making Impulse Purchases
When it comes to teaching financial responsibilities, making impulse purchases is a big no. Instead of buying them toys whenever they ask for them, parents should wait for a special occasion such as their birthday or Christmas. If parents start buying everything their children want when they ask for it, they will show them money comes easy.
Teach Children the Importance of Saving
Saving should start at an early age, according to Darcy Bergen. When children are young, show them how to put money in a jar or piggy bank. For example, if they want to buy the latest toy, parents should get them a piggy bank so they can save. If they perform their chores and clean their room, parents can add a little more money to their piggy banks.