REAPING WHAT WE SOW

Some young people need to wake their ideas up because what they are sowing now, they will be reaping in the future. Parents also need to realize that maybe they are unconsciously allowing bad habits to form in their children that will be difficult and sometimes impossible to eradicate in the future. Inculcating good financial habits in children does not come easy. There’s not much practical information available these days and most parents have only a vague idea of how to go about training their children in financial expertise.

Take weekly allowances for instance. Some children don’t get any, some have to earn it, some get it gratuitously, others ask or demand at the drop of a hat. Some parents put the allowance in a Savings Account for their children, others invest it in Life Policies, Shares etc..

One thing for sure, your children watch you like a hawk – they observe how you budget and spend your money. Unfortunately they never seem to hear much about the income side but they certainly see the ease with which money seems to flow in a never ending supply from purses, cheque books, credit cards or just on the never- never.

No wonder they learn an ‘easy come, easy go’ attitude. I would be surprised if 5% of families have at least an annual family conference when Dad explains how his budget scheme works, how he apportions a set amount to cover committed expenditure, how much Mum gets for housekeeping and her allowances. How much he retains for his allowance and contingent, variable items such as repair bills, dental and medical etc. How much for holidays and the all important factor, how much is left over to achieve the immediate goal. Wouldn’t that be a great start for your children (that is if you are operating a good financial system).

Richard Halverson wrote:
“Each of your children will meet an old man or woman someday. Down the road ahead – 30, 40, 50, 60 years, waiting for them to catch up. What kind of person will they meet will depend upon your input and their own. They may catch up with a generous, likable person who has financial stability and plenty of friends. Or they might meet up with a dried up, cynical old miser or spendthrift, soured, friendless, alone. The kind of person they meet will be the sum total of all they think, do and say from now until then. A point to remember is that these things don’t always tell immediately but they will show up sooner than they think. Time to take care of the old man or woman is right now because the day comes when it is too late.”

Habits formed in childhood usually set like concrete. I know you have good intentions to get your own household financial plan in order then you fully intend to teach your children the necessary financial skills. Let me remind you that the road to hell is paved with good intentions and unless you schedule prime time and make this your number one goal, your children might just end up like you.
You wouldn’t want that would you? Or would you?
Better check it out