The Importance of Children Understanding Money Management
Do you feel that your child has a good understanding of managing money? Here are tips on how you can tell if your child is on track with understanding the importance of money management.
According to an article at thestar.com, “Is Your Child a Spender or a Saver?”
“When it comes to financial understanding and money management, there’s plenty to worry about. Ontario students continue to struggle with math, the latest provincial standardized tests show . Their parents aren’t doing so well either. The ratio of household debt to disposable income approached a record this spring. It may make you wonder whether you’ve been a good teacher.
Here are five signs that indicate your kids are heading in the right direction.
They pass the Marshmallow Test : This experiment from the 1960s was all about impulse control. Four-year-olds were left in a room with a single marshmallow on the table. If they could hold off and not eat it, they’d get two at the end of the test.
Some waited less than a minute, others held out. The psychologist who did the study followed the kids into their 40s and found the longer they delayed their gratification when they were four, the better they did in later life.
If your kids can save now to spend later, they’re well on their way. It could be an allowance, birthday money, or cash from a part-time job.
“Saving requires an ability to push off immediate reward for future benefit,” says Avidan Milevsky, a psychology professor at the University of Pennsylvania. “Children and teens with an ability to delay gratification are more likely to grow up financially successful.” To read the entire article click here.
Ann Whitney offers free consultations to evaluate how our Wisdom Coaching for Kids program can help your child. Contact New Visions Coaching at 775-391-0884 for your free consultation or visit newvisionscoaching.com.