Where Do You Fit?

When talking to your child, is money a topic that you’d just as soon avoid? Why the discomfort? Most parents fit into one or more of these categories. See if you do.

1. Today’s parents never learned about money from their parents. Do you feel that you have no teaching model to draw upon because these are lessons you missed as a child?

2. Parents themselves don’t know how to manage money. As a result, they don’t know what to tell their kids. What about your financial habits? Do you feel that you control your money? Do you save for the long term? Many adults are still “making it up” as they go along. What’s more, many admit they aren’t doing a very good job. Are you one of them?

Fact: According to a recent Northwestern Mutual survey, 43% of parents said they did not feel capable talking about money.

3. Parents aren’t practicing what they ought to be preaching. Even when parents know how they should behave, modeling good financial behavior takes a serious commitment.  Do you resist the temptation to indulge in things like too many restaurant meals, the latest high-tech toys, and unnecessary new cars? How can parents hold their kids to a higher standard than parental actions demonstrate?

Fact: In the Northwestern Mutual parent survey, 44% said they did not set a good example modeling good financial habits.

Most disturbing of all is this fact: children learn most of what they know about money from their families. No matter your background, the fact remains that your child needs guidance. If you’re looking for direction in teaching your child about money or you want to be a better role model, explore all three sections of Tips for Parents.