Financial Habits – Are You Passing These 8 Financial Habits To Your Kids?

financial habits

It’s time to check your financial habits! Are you passing these 8 financial habits to your habits (there are 4 habits to embrace and 4 habits to avoid!)

You might THINK that your children never listen to you but I want to dispute that thought and encourage you to see that your kids can actually always WATCHING you.

This is obviously both good news (and bad news) depending on the behaviors that you exhibit inside your home.

One area where kids are quick to assimilate is your habits and attitudes regarding money.

So ask yourself now: are you demonstrating habits that will help or harm their financial future?

Here’s the thing children are great imitators so you need to give them something great to imitate.

When your children grow up and face financial situations, they’re going to mimic what they know.

It’s up to you to set an example that will enhance their financial future.

It’s not what you do for your children but what you have taught them to do for themselves that will make them successful human beings. Ann Landers

Don’t worry that your children never listen to you, worry that they are always watching you. Robert Fulghum

If you have never given much thought to what you are inadvertently teaching your kids about money, today is a wonderful day to start.

Here are 4 financial habits that make life more challenging:



1 – Using credit cards unwisely.

This may be the most devastating financial habit to acquire.

Yes, credit cards are convenient and can be an effective way to get yourself out of a financial jam, but the use of credit to purchase unnecessary items is one of the leading causes of financial stress and bankruptcy.


2 – Giving in to impulse purchases.

Children already have impulse issues.

So witnessing a parent who lacks financial control may potentially make self-control even more elusive for them in the future.

Show your children that purchases should be decided ahead of a shopping trip.


3 – Not sticking to the budget.

Sticking to your budget is another demonstration of financial self-control.

Allow your children to know that a budget exists and that certain purchases can’t be made because of the budget.


4 – Not making a clear distinction between needs and wants.

Demonstrate to your kids that needs are to be taken care of first.

Needs are imposed by nature while wants are sold by society.

To be happy in life you must learn the difference between what you want and what you need.

Wants are only considered after the critical items have been addressed.

What you want and what you need aren’t always the same. Be willing to delay short-term gratification for long-term greatness. Mandy Hale

Avoid demonstrating these financial habits to your children.

Remember that they’re always watching you.

Children close their ears to advice but open their eyes to example.

But not all habits are negative.

There are many positive financial habits you can help your children to develop by setting a good example.

Are you sharing these positive financial habits?



1 – Consistent saving.

Make a big deal out of saving money from each paycheck.

Encourage your child to do the same with a portion of any money they earn or receive as a gift.

If you had saved 15% of each paycheck since you started working, how much would you have today?

  • A healthy savings account is an effective solution to many of life’s financial challenges.


2 – Paying bills on time.

Your children see those bills with the words ‘œPast Due.’

They also notice when you avoid the bill collectors that call day and night.

Pay your bills and avoid the late fees.

You’ll also be setting a great example for your child.


3 – Sacrifice.

Making great financial strides requires sacrifice.

Let your children know that you’re not buying a new car because it’s more important to save for their college or retirement.

Give them the option of making a small purchase at the sacrifice of something else.

All financial decisions have positive and negative consequences.


4 – Enjoying the rewards of financial responsibility.

No one wants to sacrifice all the time.

The whole point of sacrificing is to enjoy the end result.

Show your children that regularly saving money results in a vacation or a new television.

Let your kids see the positive outcome of good financial habits.

What have you been working towards?

Have they seen that sometimes patience is required before you get to your goal?

Are you demonstrating good financial habits to your children?

Are you demonstrating poor habits?

All in all, you have a tremendous amount of influence over your child’s financial future.

But that is a great thing to know because it gives the power back to you.

The goal is to live life in a way that you would be happy for them to emulate.


Because there’s a good chance they are always observing your actions.

Children learn more from what you are and do than from what you teach.

Consider what you’re teaching your child each day with your money habits.

It’s not your salary that makes you rich, it’s your spending habits.

You must gain control over your money or the lack of it will forever control you. Dave Ramsey

Don’t tell me what you value. Show me your budget and I’ll tell you what you value. Joe Biden

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financial habits
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