The Financially Intelligent Parent: 8 Steps to Raising Successful, Generous, Responsible Children

What you say and do about money has a profound influence on your child. There are money moments every day that you can use to teach your children important skills and lessons about life. But what to say or do isn't always obvious. Is it a good idea to pay for chores or grades? How do you help your child develop a work ethic? How do you structure an allowance to help your child learn to make choices? Why is involving your children in charity so important? Eileen and Jon Gallo, experts in the fields of children, psychology and money, provide parents with eight key behaviors that will help them raise financially responsible children:

1. Encourage a work ethic

Work ethic is a learned behavior, and parents are the best models to teach kids to acquire it. If you want your children to work hard and derive meaning and satisfaction from what they do, make sure you are modeling the right messages. Insisting your kids do their homework and help around the house does not guarantee they will grow up with a sense of accountability and a desire to achieve. Developing a work ethic in your child is a holistic process and the eight money behaviors of a financially intelligent parent are keys to this process.

2. Get your own money stories straight

Because you send your children messages about money all the time, it is imperative that both you and your spouse are on the same page when it comes to your money stories. A money story is an open, honest and personal story of your relationship with financial issues, especially as you grew up because most people's relationship with money developed during childhood. You need to identify why you feel the way you do about money so you can send coherent and consistent messages to your kids. When both parents focus on their money stories, children receive positive messages. Getting your money stories straight does not just mean that you agree on basic issues such as allowances and college savings. It also means that both of you have agreed to identify certain basic money values you want to teach your children, such as giving is good, working hard is its own reward, and you don't always get everything you want.

3. Facilitate financial reflection

As with most decisions kids make, when it comes to money decisions they are frequently impulsive. As a financially intelligent parent, you want to teach your children how to think in terms of choices, alternatives and consequences. This is called reflective thinking. Learning how to reflect both before and after making a decision is a great life skill, and one that is the hallmark of people who make good choices in everything from careers to relationships to investments. Financially intelligent parents teach their children to evaluate financial consequences based on available choices rather than making impulsive decisions. As a result, children recognize that there are many options available and they acquire the skill to make good choices.

4. Become a charitable family

By teaching your children that they can do more with money than spend it on themselves, you encourage them to become more compassionate and caring. By participating as a family in volunteer and community activities, you help your children develop empathy and a sense of responsibility to others. Your children will realize they have the power to make life better for others. Because children learn through modeling behavior, you have to do more than write a check to charity. You need to show your children what it means to help others. Modeling charitable behaviors, including volunteerism, can jump start your child's empathy and desire to help others.

5. Teach financial literacy

Although it is important to teach children how to balance a checkbook and create a budget, to become truly financially literate your children must learn within a context of values and money behaviors. Your children need a combination of concrete examples, their own experiences and financial reflection. If they do not learn to behave responsibly with money as kids, they will have to learn as adults when the cost is much higher. One of the best tools to teach your children financial literacy is an allowance. Approaching allowances in a consistently constructive way allows you to instill decision-making wisdom in your children rather than controlling them. An allowance also helps your children gain a well-balanced perspective about money, encouraging saving, investing and giving, in addition to spending.

6. Awareness of the values you model

Your children are tuned in to your purchasing decisions. The ways you spend your money sends messages to your children about your values and life priorities. Children also notice how you spend your time and your actions can unintentionally send messages you did not intend your children to receive. When you miss opportunities to spend time with your children in order to put in extra hours at work or manage your money, you are sending a message that money is more important than family. Financially intelligent parents are highly conscious of their spending habits, as well as how they balance their work and family time, and the values they communicate.

7. Moderate extreme money tendencies

Extreme money tendencies can evolve into money disorders which cause chaos within your family and send the wrong messages to your children. There are several types of money disorders, ranging from excessive shopping to racking up credit card debt to excessive frugality. Regardless of the disorder, extreme money tendencies cause your children to experience confusion and insecurity in their lives. Financially intelligent parents learn to recognize and moderate extreme money behaviors.

8. Talking about the tough topics

Parents avoid talking about financial topics that make them uncomfortable or that seem too complicated. Although you model good money behaviors in certain ways, unless you compliment these behaviors with good money conversations, you are not being as effective as you could be. Financially intelligent parents recognize teachable times each day that give you and your children the opportunity to talk about financial issues. You should welcome these opportunities, as difficult as they are, to discuss and reflect on financial decisions.

A free-reprint article written by: Eileen Gallo, Ph.D., and Jon Gallo, J.D, ? 2005

Reprint Terms

- You can publish this article electronically in publications, websites, and ezines as long as the bylines and hyperlinks are included.
- You are not allowed to use this article in unsolicited commercial email. This article MUST be distributed via opt-in email only.
- If you use this article we request that you send a copy or link that contains the article to dsafkow@fiparent.com.

Eileen Gallo, Ph.D., and Jon Gallo, J.D. are experts on children, families and money, and the authors of The Financially Intelligent Parent: 8 Steps to Raising Successful, Generous, Responsible Children (New American Library/Penguin Group). For more financially intelligent parenting tips and tools, visit http://www.fiparent.com.

weekly home cleaning Highland Park ..
In The News:

Threat intelligence firm Synthient uncovers one of the largest password exposures ever, prompting immediate security recommendations.
Viral video shared by Elon Musk shows Tesla's Optimus humanoid robots performing tasks from cooking to construction, garnering over 58.5 million views on social media.
Chinese hackers used Anthropic's Claude AI to launch autonomous cyberattacks on 30 organizations worldwide, marking a major shift in cybersecurity threats.
Apple's new Sleep Score feature gives you a rating for your nightly rest quality. Learn how to set it up on your Apple Watch and iPhone today.
Essential phone settings to enable before losing your device, including Find My network, location services and security features for iPhone and Android.
The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.
Cybersecurity research shows weak passwords remain a major threat, with simple patterns and number sequences putting millions of accounts at risk.
New Android malware BankBot YNRK silences phones, steals banking data and drains crypto wallets automatically. Learn how this advanced threat works.
FDA approves first human trial for Paradromics' brain-computer interface that could restore speech for paralyzed patients through neural technology.
New phishing platform QRR targets Microsoft 365 users across 1,000 domains in 90 countries. Learn how to spot fake login pages and protect your accounts.
OpenTable now uses AI to track your dining habits and share insights with restaurants. Learn what data they collect and how to protect your privacy.
Google's discontinued Nest thermostats still secretly upload home data to company servers despite losing smart features, raising serious privacy concerns.
New Android malware NGate steals NFC payment codes in real-time, allowing criminals to withdraw cash from ATMs without your card. Learn protection tips.
DoorDash confirms data breach exposing customer names, emails, addresses after social engineering attack. Learn how to protect yourself from scams.
Concerned about Google's AI scanning your Gmail? Learn how to disable Gemini features that access your emails, Drive files and Chat messages for privacy.
Google warns Android users about dangerous fake VPN apps hiding malware that steals passwords, banking details and personal data from phones and tablets.
Apple's digital passport feature lets iPhone users breeze through TSA checkpoints this holiday season using Digital ID technology at 250+ airports.
A new phishing scam targets family photos with fake "Cloud Storage Full" alerts. Criminals steal credit card information through fake sites. Learn protection tips.
South Korean scientists create ultra-thin fabric muscles that turn clothes into robotic assistants, lifting 33 pounds while weighing under half an ounce.
Archer Aviation has acquired Hawthorne Airport for $126M to launch an LA air taxi network ahead of the 2028 Olympics, featuring AI-powered eVTOL operations and next-gen aviation tech.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Fake AI apps disguised as "ChatGPT" and "DALLĀ·E" are flooding app stores with dangerous malware that steals data and monitors users without detection.
Fake buyers demand specific vehicle reports from unknown sites to steal credit card information from car sellers, but warning signs can help identify these scams before paying.
Android users can now manage apps across multiple devices more easily with Google Play Store's updated remote uninstall button in the latest update.
NASA's Perseverance rover discovers shiny metallic rock on Mars that could be a meteorite from an ancient asteroid, containing high levels of iron and nickel.

Your Job as a Role Model

A certain educator was once asked at what point should... Read More

Confident Kids : Why Some Parents Should Carry a Health Warning

As a hypnotherapist, I am acutely aware of the power... Read More

Finding Answers to Underachievement

Finding answers to a child's underachievement is often a difficult... Read More

How To Be A Bad Mother

As I sit here and reflect on the past two... Read More

Do You Have the Loving Relationship With Your Children That You Desire?

Most people with children want to be good parents. The... Read More

The ABCs of Raising Twins

As a mother of two sets of fraternal boy/girl twins,... Read More

Teaching Kids to Read

We are all so very happy to see that the... Read More

Your Big Yellow Bus

The big yellow school bus is coming down my road... Read More

Parenting Your Teenager: 4 Dangerous Myths

MYTH: All teens have to rebel, and the teen years... Read More

Discipline Without Damage

If your parenting methods include abuse of any kind; physical,... Read More

Parenting

This article on parenting is by a practicing relationship counsellor/therapist,... Read More

Simple Indulgences for September

As the kids go back to school, you can go... Read More

Frequently Asked Questions About Reading To Your Child

Are you worried about your child's reading habits? Perhaps you... Read More

Gifted Children - Getting the Balance Right

One of the challenges for parents with a gifted child... Read More

Blended Families Can Be Successful

Many families today are blending members from past relationships. It... Read More

Playground Pettiness

Recently I took my two children to a popular new... Read More

What Do You Teach Your Children About Money?

Whether we realize it or not we teach our children... Read More

Childrens Safety in Public Places - 10 Useful Tips

My kids ask me all the time to take them... Read More

Im a Father, Doesnt Anyone Care?

The snow was getting heavier with each lift of the... Read More

How Is Peaceful Parenting? Different?

Peaceful Parenting? ideas are very different from other kinds of... Read More

Develop Your Childs Genius - Right Brain/Left Brain Coordination

No matter how old your children are, you have an... Read More

Diagnosing ADHD in Children, an Introduction

Everyone in a private practice setting who works with children... Read More

When Parents Disagree

Moms and dads, are there times you think that parenting... Read More

Reclaiming Her Identity: A Mothers Diary

After giving up my profession to become a wife, a... Read More

Life Lessons Learned in My Underwear

For several years now, I've told the following story as... Read More

whole house cleaning Park Ridge ..