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5 Ways To Teach Good Money Habits To Your Kids

5 Ways To Teach Good Money Habits To Your Kids

For most adults, the first meeting with money management comes in the form of a coin collector box. You remember getting a buck from family after a task or doing a good deed and putting it in your piggy bank.

Did you know that kids as young as three years old can understand the theories of spending and saving? Not only this, but their money habits are typically set by the age of seven, according to a study by the University of Cambridge. As per the report, parents have the biggest influence on their children’s money-management habits. Consequently, the teaching of financial responsibility by parents should not stop with the piggy bank, as they are the first influence on their child’s financial behaviors. Teaching some good money habits to kids can save them from making some major mistakes in the future. The economic crisis indicates that every parent should start developing good money habits in their kids (from the age of three) to establish a well-founded financial base.

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Here are some important lessons about money that we should all impart on our children to help them take control of their financial futures.

1. Model good financial behavior

The first and most important thing to keep in mind is that children have a tendency to do what their parents or their elders do. Children are very observant, and often adopt and soak in many actions simply from watching their parents. Therefore, parents should model good financial behavior by showcasing positive financial habits and philosophies on a daily basis. This includes things like shopping on a set budget, using coupons and discount offers to pay less for goods, and making choices between new and used baby accessories, which can all make a huge impact on savings. Do your research to demonstrate the opportunity costs involved, and talk about money management.

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2. Save for the future

The concept of saving to build a successful financial foundation is very common, but it can be difficult to implement as kids quickly become attracted to the latest items on the market.

Open a savings account for your child to which they contribute each week. At the end of each month, show them the monthly bank statement — this will motivate them to save more from their weekly pocket money. This is the first baby step toward setting your child up for a lifetime of good financial habits.

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According to a research by the University of Wisconsin-Madison, even preschoolers can learn basic financial concepts.

3. Involve them in shopping and budgeting

You can help your kids to learn constructive money habits by involving them in your weekly household goods shopping and in creating monthly budgets. During visits to grocery store and other shops, let children take charge of the shopping lists. Encourage them to choose the best products with value and use this situation to discuss spending, saving, planning, and more. Budgeting should be a part of yours, as well as your kid’s, life. The development of successful personal finance hinges on budgeting. Train kids to budget for every little thing.

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4. Let them wait to buy something they want

This is the hardest lesson for every age group to learn, especially for teenage children. Parents should assist them in choosing things that they really need. Extra expenses will make them devalue the amount of money given to them.

“Money doesn’t grow on Trees” — this is the guide that every parent should use to raise financially responsible children. At an early age, kids need to learn that if they really want to buy something, they have to wait and save to buy it. Money lessons at this age set the tone for their future. Make them understand that going into a store doesn’t always mean you will buy something.

 5. Let them make mistakes

Even if you believe that your child is about to waste their money on a toy or game they will be soon tired of, let them buy the item, because it might just teach them a lasting lesson. They will feel like they wasted money ​on toys they enjoyed only one or two times and will remember this in the future. So, let the kids do the work themselves, let them make mistakes and have fun. Explain how you learned from certain missteps in your own childhood.

Featured photo credit: studio-r via studio-r.biz

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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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Published on September 21, 2020

The Danger of Overscheduling Your Kids

The Danger of Overscheduling Your Kids

I am a parent of three children aged 8, 6, and 6. Like many parents, I struggle with knowing the right balance of activities for them. I don’t want my kids to miss out on opportunities to play sports and participate in activities that will enhance their lives and help them grow as individuals. However, I also don’t want them to become overscheduled kids, to the extent that they get worn out and stressed out.

There is a balance in providing activities for our children and overscheduling them. The tendency for the latter is prevalent these days. Our lives — and the lives of our kids — are increasingly overscheduled and overworked. Thus, we need to understand the dangers of having overscheduled kids and how to prevent this from happening in our own families.

What’s Wrong with Overscheduling Your Kids?

1. Overscheduling Can Burn Out Our Kids

When our kids are on the go and scheduled to the max from a young age, their potential to get burned out before reaching high school is quite high. The New York Times reported some research on burnout and found that burnout with kids relates to their workload, along with their parents’ propensity to experience it.[1] This means that overworked children are more likely to get burned out than others. Similarly, overscheduled parents tend to have overscheduled kids more often than not.

Burnout

When a person is burned out, they feel overwhelmed and exhausted by what others expect them to get done daily. Children who are involved in too many activities with little to no downtime have a high chance of experiencing burnout. When parents place too many expectations on their kids, they also have an increased potential to burn out.

If you get the sense that your child is feeling overworked or overwhelmed by their daily activities, you need to know which ones can be cut back. If they have too many activities outside of school work, for instance, then that is one area that likely needs to be downsized.

An overworked child will present various symptoms like moodiness, irritability, crankiness, despondency, anger, stomach aches, headaches, rebellion, etc. Cutting back their activities will help to relieve their stress and reduce the said burnout signs. If your kid has severe burnout symptoms, though, then professional help from a pediatrician or therapist for children should be sought.

Downtime

Downtime is key to helping relieve burnout. If children don’t have free time during the day to have any rest, they are more likely to become burned out than others. Downtime means unorganized free time to do what they enjoy or relax. Cut back your kids’ extra-curricular activities if they don’t have downtime in their schedule.

Here are more tips on creating downtime for the children: How to Create Downtime for Kids.

2. Overscheduling Kills Playtime and Creativity

Kids need time to be kids. When their schedules are filled every day with activities like organized ballet, soccer, and music lessons, and they only take a break for dinner and bedtime, then they are overscheduled. They need to have free time after school to relax and play. When they don’t have that and proceed from one scheduled activity to the next, they are missing out on playtime.

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Playtime is crucial to child development. If they cannot get enough time to play, then their ability to develop their creativity decreases. The Genius of Play explains that there are six major developmental benefits that children get from playtime:[2]

  • Creativity
  • Social skill development
  • Cognitive development
  • Physical development (i.e., balance, coordination)
  • Communication skills
  • Emotional development

If children don’t have time to play because they are always on-the-go, then they are missing out on the developmental benefits of play.

Children need downtime after school so that they can unwind, play, and decompress. Research from the Journal of Early Childhood Development and Care showed that kids need to play to deal with anxiety, stress, and worry.[3] Playtime provides an outlet for them to manage these emotions in a healthy manner and helps with the development of their creativity.

Children need free time to play every day. Fifteen minutes at recess is not enough. They need time for it after school, at home, outside of the constraints of scheduled activities.

Solution

Ensure that your child has time to play after school. This is especially important for young children who greatly benefit from playing. Limit organized activities so that your child is not scheduled every day and can play after school. If they have an activity every hour, then it doesn’t allow for playtime.

3. Overscheduling Causes Stress and Pressure

When kids are overscheduled because their parents are so intent on having high-performing children, then they will feel stressed. Parental pressure upon a child to do well in academics, music, multiple sports, and religious studies is a reality for many kids. The children scheduled in all of these activities can often feel stress and pressure, especially when they are expected to succeed in all of them.

It is hard enough for kids to be good or succeed at a single activity. For a parent to overschedule their child and expect superior performance in various activities, that is a recipe for a stressed-out child.

Solution

Parents should not schedule kids in multiple activities with the expectation of superior performance in all. They should also consider the child’s interests. If the child is not interested in one activity, then they are likely to feel stressed and pressured to do it.

For example, if Suzy has been taking piano lessons for four years, and she no longer enjoys learning the instrument, then perhaps it is time to take a break. If Suzy is forced to continue with the lessons and daily practices, then she may feel pressured to continue performing simply because her mom wants her to do so. This can lead Suzy to resent her mother for forcing her to keep on doing something that she doesn’t like anymore.

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Let your child help in selecting the activities that they get involved in. Also, put a cap on the number of activities they are doing. If they have a different activity every weekday, then they are likely overscheduled.

Kids need downtime and time to play, too. If they need to do a new activity every day, that downtime is diminished, considering the time at home or outside of the scheduled activities is limited. This limited time is then filled with homework, mealtime, and bedtime prep. Eliminating activities several days a week will allow the child to have some time to play freely. The younger the kid is, the more time they need playtime. As they get older, they can take on more activities; however, under the age of 13, playing daily is a must for children.

4. Healthy Eating Falls by the Wayside

Any parent who’s busy chauffeuring multiple kids to different activities after school knows how tempting fast food can become. Fast food, however, leads to less healthy food choices. French fries and hamburgers — the staple combo in most fast-food joints — cannot help your child thrive nutritionally.

When families are overscheduled, they tend to go for easy and quick meals. When rushed, many of us make poor food choices because we aren’t taking the time to think about a meal’s nutritional value and a balanced diet for our children.

5. Family Mealtimes Become a Thing of the Past

When we are taking our kids to sports and other extra-curricular activities that fall during dinnertime, the family often misses out on sharing a meal at home.

This is true in our own home. There are certain nights of the week that we have practices, and so we either eat together early (if possible) or eat separately, depending on what our schedules allow.

There is so much value in having family dinners. It provides an opportunity for family members to discuss their day, including their work and school activities. It is a time when technology is set aside so that everyone can truly focus on communicating with one another and catching up on what is happening in each other’s lives. When a kid’s activities are scheduled every evening, then that family time at the dining table gets lost. Dinnertime becomes a thing of the past as we overschedule kids and ourselves.

Try learning more about family time here: How to Maximize Family Time? 13 Simple Ways You Can Try Immediately.

Solution

Assess our schedule during the week to ensure that there’s always time for dinner with the family. Make it a point to establish a dinnertime schedule for the evenings that you do not have prior engagements scheduled. Remember: the time that you have with your kids under your roof is fleeting. Before long, they will be grownups and start living on their own. You need not dismiss or minimize the opportunity to bond with your children over meals.

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Having family mealtimes also allows you to make excellent food choices. This way, parents can create balanced and healthy meals and teach their children about the importance of eating good food for their bodies.

How to Turn Things Around?

1. Fix the Displaced Ambitions

Parents with overscheduled kids often mean well. They want their children to succeed, so they give them every chance to make it happen. They sign them up for various lessons, sports, and activities that may help the kids find success in life.

In other cases, the parent probably didn’t get such opportunities when they were young and felt that they missed out on many things. Hence, they provide those missed opportunities to their kids during their own childhood.

Carla is an example of such a parent. Carla always wanted to take dance and ballet classes as a child. She heard her friends talk about dance classes and performances, and they would even bring recital photos to school, showing their beautiful, detailed costumes. Carla wanted to be in those dance classes and learn ballet and have the opportunity to perform in a beautiful costume in front of an audience. Unfortunately, her family could not afford to give her that opportunity.

When Carla gave birth to a baby girl, she had visions of her little one growing big enough to take dance, ballet, and even tap classes someday. She was looking forward to dressing her daughter in dance costumes and watching her take lessons and eventually performing in recitals. When Carla’s daughter Anna was old enough to enroll at a dance class at four years old, she was thrilled. However, after a few months, it became clear that Anna was not enjoying these classes. She would cry before every lesson, begging Carla to let her stay home and not go to class. Her daughter had no interest in learning to dance.

In truth, it happens to many parents. They would enroll their kid in an activity that they wanted to do as a child but never got to try. Unfortunately, a parent’s interest is not always the same as that of their kids’. The child may humor mom or dad for some time and do the activity out of compliance. But if the child does not enjoy it anymore, they will eventually make things clear to their parents.

Parents should listen to their children. If the activity is something that they do not enjoy doing, ask the children what they think they would like to do, and then eliminate activities that they are not into. Similarly, teach them commitment by finishing a program, but don’t enroll them again in the same class if they absolutely do not want to do it.

Let the kids try different activities at a young age. Sometimes they don’t know if they like something until they try it out.

2. Try Clinics of Camps Before Committing

Don’t enroll your child in three sports at the same time to see which one they like or excel at. Doing so will make your kid overscheduled. Instead, you can use the summer break or preseason camps or clinics to try a variety of activities they are interested in.

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As an example, all three of my children said that they wanted to do lacrosse. We had already tried soccer, and it was not successful for two out of three of them. They would rather chase butterflies down the field or play tag than actually participate in their games. Therefore, before committing to lacrosse and spending a great deal of money on their gear, I signed them up for a sample clinic. It was a one-day program that intended to expose children to the sport and see if they would perhaps enjoy playing it. I was surprised to find that the three kids enjoyed lacrosse, so we signed up for the season. It was nice to be able to see them try out the sport in a clinic before committing to an entire season.

Most towns and cities have parks and recreation department. This is often a good place to check for clinics and camps for various activities. Our local department even offers art and dance classes. Most of them meet between two and four times total, so the children can get some exposure to the activity before signing them up at a private facility for a more long-term commitment.

3. Take an Inventory of Your Weekly Activities

Often, we do an activity without reflecting on how much we are already committed to doing each week. Before we commit to any more activities, we must be willing to look at everything that each family member does. Every child’s commitment is another responsibility for the parent as well. Parents must take children to and from each practice, so you need to consider the drive time for any activity.

For instance, if each of my three kids signed up for three different activities each week, I would be running myself ragged. Three activities for three kids means taking them to nine activities during the week. That doesn’t include the games that will likely be scheduled on the weekends. Three activities for every child, therefore, is too much for our family.

If some practices overlap on the schedule, then you need two parents or responsible adults to transport the children to different locations. Before you sign them up for multiple activities, you need to factor downtime, stress levels, and your ability to take them to each activity in the equation.

Consider the following before your kids can commit to various activities:

  • What is the time commitment for the child each week? Do they have enough energy and stamina for the activities? Do they get enough downtime daily to prevent burnout?
  • Is practice time required outside of their scheduled team practices and games?
  • How long is the travel time for you as a parent, along with wait time during practices? Do you have time allowances for these activities in your own schedule?
  • Does the activity time conflict with other activities on the schedule? Will it eliminate family dinners on a regular basis?
  • Does the child really want to do the activity?
  • What is the motivation for signing up for the activity?
  • Is this activity or commitment going to cause a great deal of stress on the child or other family members?

Check out these time-management tips for parents: 10 Time Management Tips Every Busy Parent Needs to Know.

Get The Kids Active and Involved!

Despite everything, it does not mean that you shouldn’t sign your child up for different activities like sports, music, dance, karate, etc. They are all great activities that can help children develop a variety of valuable life skills. The goal is to enroll them in things that they genuinely enjoy and avoid overscheduling kids by not letting them sign up for too many activities at a time.

More Tips for Scheduling Kids’ Activities

Featured photo credit: Kelly Sikkema via unsplash.com

Reference

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