| Diary of a Recession Baby (as posted on "Market Watch" April 20, 2010) |
|
Recession lessons that will last kids a lifetime
You can use financial stress to teach children realistic money views By Ruth Mantell, MarketWatch WASHINGTON (MarketWatch) -- I'm tempted to cover my baby's ears while her father and I talk about luxuries to cut -- should it be satellite TV or Internet? Cookies or ice cream? The temptation to shield my child grows when Dan and I talk about curbing basic consumption: Is it worth it to get a broken boot heel repaired? Is rice or pasta cheaper (but which is healthier)? Can we learn how to cut each other's hair without looking like a psychotic child attacked us with a pair of blunt scissors? All of this mental haggling has me concerned that the financial stress Dan and I shoulder could somehow infect our child's psyche. While my seven-month-old is too young to understand that she's growing up during one of the worst economies in decades, Dan and I do our best to remain upbeat around our baby. For families with older kids, experts say these tough times are a good occasion to teach children about financial realities, and these are lessons that can last a lifetime…... Lessons to last a lifetime Today's kids may end up with a more realistic view of money compared with previous cohorts as long as parents reinforce important lessons, said Kathleen Gurney, a psychologist and chief executive of Financial Psychology Corp., a Sarasota, Fla., advisory firm. "We will have a whole generation of children growing up with healthy lifestyles, attitudes and behavior with money if we all make sure that this is not just a lesson for the Great Recession, but a lesson for a lifetime," Gurney said. To instill lessons, parents need to regularly talk to their kids, and keep up good spending habits. "I don't think the lessons will be maintained over time unless the family decides they want to keep these financial habits," Gurney said. "Role modeling is very powerful." Parents can be honest about their own missteps to teach their children a lesson, Gurney said. "This is a great time for families to come clean and say: 'here's what we've been doing, here's the trouble we are in now, and here's what we have to do.'"... Kids can learn about money when parents let them contribute. "Feeling like we have some control over the situation is a phenomenal thing to learn when we are young," Gurney said. Kids can also learn about priorities from their allowance, especially if it's been reduced. "Helping children understand what is most important to them is another really valuable lesson in these times," Gurney said. "They can't have it all, and it's not realistic to think they can have it all." |
BLOG
Follow Dr. Kathleen Gurney’s keen insights into the powerful effect money has on our psyche and culture and read her tips about making the best use of money for what matters most in our lives.
BOOK
Your Money Personality (Revised in 2009)
Learn about the nine money personalities. Find out more about who you are and thousands of others like you in your group, how some succeed and what ultimately satisfies them.
MONEYMAX®
Learn how to profit from personal financial traits and avoid costly pitfalls in your money management style with a proven and powerful tool. The questionnaire is easy and fun and only takes 5-10 minutes. Empower yourself with your customized money action plan.
Join Our Community:
...