Money-smart parents make money-smart kids. That is the results from a recent study conducted by financial group T. Rowe Price discovered.
The study also found the earlier you begin teaching children about saving the better.
But the opposite is also true, the study warns. Parents who overspend also pass bad money habits onto their sons and daughters.
Back-to-school shopping is when many successful parents start their kids' money lessons.
Tampa business owner Tony Bimonte, of A&D Automotive Center, was raised by a money-smart mom. He passed on this wisdom to his kids: spend half, save half; and be patient, wait for sales.
"You can't have everything right now," Bimonte says. "You need to save for rainy days, put a little bit to the side. Just be smart."
His 17-year-old daughter Kristi smiles at the advice.
"Keep your money as long as you can," said Kristi.
GTE Financial money expert Christel Ventura also urges parents to try different teaching tactics:
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Show children the value of a dollar: Get kids involved with shopping trips to the grocery store. Although modern conveniences like debit cards and banking apps are making cash and coins "invisible," you can still teach kids dollars and cents are very much real and saving often leads to a financially sound future.
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Want vs. Need: We all want certain things, but needs must come first. Confusing the two can lead to overspending and debt.
- Teach children how to manage money: Explain and show kids that their allowance can be saved and to watch where it goes. This will teach them how fast it can be spent and the luxury of how much can be saved.
