Money Mindsets: Nurturing and Nudging Healthy Money Thinking and Habits in Children!
by Team Sammy
Thank You!
Big Sammy Rabbit gratitude for today's guest column by Julina Ogilvie, CIMA®, CPWA®, Partner, Principle Wealth, Westport, Connecticut.
When to Start
Talking to kids about money and finance can be a daunting task for parents. When should they start? What lessons should they impart, and how should they approach the conversation? These questions often linger, but one thing is clear: children begin observing financial behaviors at a young age, unintentionally shaping their money mindsets.
What exactly is a money mindset?
It’s the collection of beliefs, attitudes, and feelings individuals hold toward money. These mindsets are molded by observations, experiences, and conversations surrounding money from childhood. They influence emotions, values, and habits with a lasting impact on financial management.
A Nudge, a Little at a Time
Reflecting on personal experiences, one can trace the origins of their money mindset to pivotal moments. For instance, a childhood trip to a poverty-stricken village in northern Brazil left an indelible mark on my perception of money. Witnessing extreme poverty and contrasting it with my own circumstances instilled a sense of anxiety and fear about financial security.
While I’m not advocating parents to create an extreme experience like embarking on an expedition to the Amazon, it emphasizes the importance of being mindful of children’s surroundings, experiences, and conversations.
These experiences do not need to be planned or structured; they can come from everyday interactions and observations - a nudge, a little at a time.
The Kitchen Table
On a more practical note, another childhood memory involves the habit of balancing a checkbook. My father taught me how to do this when I opened my first bank account. I recall the two of us sitting at the kitchen table and him showing me how to write a check and enter it into the checkbook. In a world today dominated by online banking, this might seem antiquated, but the routine of recording transactions each month persists. It’s a tangible way that I visually manage finances and maintain a sense of control. This is another example of how early lessons can transcend into habits as an adult.
Parents Need Not Be Financial Experts
To understand your money mindset, reflect on the experiences that shaped it. If not an experience or lesson, could it have been a phrase? Maybe something like, “Money doesn’t grow on trees”?
How did your family discuss money, if discussed at all? Recognizing these influences can aid in fostering positive habits, behaviors, and emotions regarding money in your children.
Parents need not be financial experts to nurture healthy money mindsets. It’s essential to be mindful of the messages, both explicitly and implicitly. Small nudges can make a difference. Being open, sharing stories, and encouraging questions create an environment where children can develop a positive relationship with money.
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