| What you say and do about money has a profound | | | | family in volunteer and community activities, you help |
| influence on your child. There are money moments | | | | your children develop empathy and a sense of |
| every day that you can use to teach your children | | | | responsibility to others. Your children will realize they |
| important skills and lessons about life. But what to say | | | | have the power to make life better for others. |
| or do isn't always obvious. Is it a good idea to pay for | | | | Because children learn through modeling behavior, you |
| chores or grades? How do you help your child | | | | have to do more than write a check to charity. You |
| develop a work ethic? How do you structure an | | | | need to show your children what it means to help |
| allowance to help your child learn to make choices? | | | | others. Modeling charitable behaviors, including |
| Why is involving your children in charity so important? | | | | volunteerism, can jump start your child's empathy and |
| Eileen and Jon Gallo, experts in the fields of children, | | | | desire to help others.5. Teach financial literacyAlthough |
| psychology and money, provide parents with eight key | | | | it is important to teach children how to balance a |
| behaviors that will help them raise financially | | | | checkbook and create a budget, to become truly |
| responsible children:1. Encourage a work ethicWork | | | | financially literate your children must learn within a |
| ethic is a learned behavior, and parents are the best | | | | context of values and money behaviors. Your children |
| models to teach kids to acquire it. If you want your | | | | need a combination of concrete examples, their own |
| children to work hard and derive meaning and | | | | experiences and financial reflection. If they do not learn |
| satisfaction from what they do, make sure you are | | | | to behave responsibly with money as kids, they will |
| modeling the right messages. Insisting your kids do their | | | | have to learn as adults when the cost is much higher. |
| homework and help around the house does not | | | | One of the best tools to teach your children financial |
| guarantee they will grow up with a sense of | | | | literacy is an allowance. Approaching allowances in a |
| accountability and a desire to achieve. Developing a | | | | consistently constructive way allows you to instill |
| work ethic in your child is a holistic process and the | | | | decision-making wisdom in your children rather than |
| eight money behaviors of a financially intelligent parent | | | | controlling them. An allowance also helps your children |
| are keys to this process.2. Get your own money | | | | gain a well-balanced perspective about money, |
| stories straightBecause you send your children | | | | encouraging saving, investing and giving, in addition to |
| messages about money all the time, it is imperative | | | | spending.6. Awareness of the values you modelYour |
| that both you and your spouse are on the same page | | | | children are tuned in to your purchasing decisions. The |
| when it comes to your money stories. A money story | | | | ways you spend your money sends messages to |
| is an open, honest and personal story of your | | | | your children about your values and life priorities. |
| relationship with financial issues, especially as you grew | | | | Children also notice how you spend your time and |
| up because most people's relationship with money | | | | your actions can unintentionally send messages you |
| developed during childhood. You need to identify why | | | | did not intend your children to receive. When you miss |
| you feel the way you do about money so you can | | | | opportunities to spend time with your children in order |
| send coherent and consistent messages to your kids. | | | | to put in extra hours at work or manage your money, |
| When both parents focus on their money stories, | | | | you are sending a message that money is more |
| children receive positive messages. Getting your | | | | important than family. Financially intelligent parents are |
| money stories straight does not just mean that you | | | | highly conscious of their spending habits, as well as |
| agree on basic issues such as allowances and college | | | | how they balance their work and family time, and the |
| savings. It also means that both of you have agreed to | | | | values they communicate.7. Moderate extreme money |
| identify certain basic money values you want to teach | | | | tendenciesExtreme money tendencies can evolve into |
| your children, such as giving is good, working hard is its | | | | money disorders which cause chaos within your family |
| own reward, and you don't always get everything you | | | | and send the wrong messages to your children. There |
| want.3. Facilitate financial reflectionAs with most | | | | are several types of money disorders, ranging from |
| decisions kids make, when it comes to money | | | | excessive shopping to racking up credit card debt to |
| decisions they are frequently impulsive. As a financially | | | | excessive frugality. Regardless of the disorder, |
| intelligent parent, you want to teach your children how | | | | extreme money tendencies cause your children to |
| to think in terms of choices, alternatives and | | | | experience confusion and insecurity in their lives. |
| consequences. This is called reflective thinking. Learning | | | | Financially intelligent parents learn to recognize and |
| how to reflect both before and after making a decision | | | | moderate extreme money behaviors.8. Talking about |
| is a great life skill, and one that is the hallmark of | | | | the tough topicsParents avoid talking about financial |
| people who make good choices in everything from | | | | topics that make them uncomfortable or that seem |
| careers to relationships to investments. Financially | | | | too complicated. Although you model good money |
| intelligent parents teach their children to evaluate | | | | behaviors in certain ways, unless you compliment |
| financial consequences based on available choices | | | | these behaviors with good money conversations, you |
| rather than making impulsive decisions. As a result, | | | | are not being as effective as you could be. Financially |
| children recognize that there are many options | | | | intelligent parents recognize teachable times each day |
| available and they acquire the skill to make good | | | | that give you and your children the opportunity to talk |
| choices.4. Become a charitable familyBy teaching your | | | | about financial issues. You should welcome these |
| children that they can do more with money than spend | | | | opportunities, as difficult as they are, to discuss and |
| it on themselves, you encourage them to become | | | | reflect on financial decisions.A free-reprint article |
| more compassionate and caring. By participating as a | | | | written by: Eileen Gallo, Ph.D., and Jon Gallo, J. |