Many years ago, I saw a video titled “Children are watching”. It was a touching video depicting how children watch every action and try to imitate it. If parents often quarrel and shout at each other, even in front of their children, it makes a bad imprint on the tender mind, and as they grow, it is a result of extensive research that such children end up in unrest of mind and activity. Fighting with life partners,neighbors, etc. On the other hand, parents who live a love-filled life along with their children can certainly inculcate the same loving, joyful habits among children. It is found that these children have a successful life.
Children are watching you from every corner. That’s why be careful what you say, how you behave, how you walk or drive, how you laugh or get angry, how you treat relatives, friends, and unknowns, older or younger, how you purchase or sell and bargain, how you help others, and how you have helped them to resolve any problem during studies or in any trouble, how you catch a bus or ride a roller coaster, and even how you react when you consult with a doctor or financial advisor.
In this article, I am more concerned about your financial habits that leave a deep impression on the minds of your children.
There may be many variant situations in your financial life. In every financial situation, your behaviour in front of your children should be very balanced, never unpredictable, not illogical, very relatable, reliable, responsible, and accountable. Let us examine a different situation. What should be your behaviour when children are watching?
When dealing with a financial crisis or experiencing significant losses in business– avoid showing nervousness. If possible, discuss it with your children, if they are grown up, and tell them how you got into the trap and what ways you are looking to get out of it. Ask for some suggestions.
When there is a big loan running around– tell them upfront why you had to take such a loan and what your plan is to get rid of it within the stipulated time. Don’t forget to ask for suggestions.
When you are financially sound– tell your children what efforts you made to get it and discuss ways to sustain it. Always ask for some suggestions.
When husband and wife are both well-earning– tell them why both of you are going to work. Make them realize that it is for their betterment. You must not miss your children’s upbringing occasions, or else they will turn away from you. Keep discussing and resolving their concerns on a day-to-day basis and appreciate their achievements.
When there is a loss of a job– in such a bad situation, don’t lose hope and never forget to inform your children. Tell them to curtail their extravagancies and unnecessary expenses till the situation normalise.
When you are not able to support costly higher education– tell children upfront that you are not in a position to help them financially to fund further costly education. You cannot suggest them not to pursue this costly education, nor can you suggest them to extend their admission for an indefinite period of time, but rather to work extra hours or earn extra money to support their costly education.
When you give the first pocket money to your child– educate them first on how to spend this money, not to spend the whole amount at once, and help them to start saving from day one. Explain to them why they should save the maximum amount from their pocket for the future because they might not have any expenses.
When your children get their first pay cheque– the first pay cheque, there is a lot of excitement in one’s life, but as a parent, it is becomes your duty to help them understand the difference between savings and investing, inflation and return, the power of compounding, the power of contingency provisions, the power of setting SMART financial goals, philanthropy, and the latest instruments of investment.
Conclusion :There can be many other situations, but the crux is to help them understand the fine print of investments. When you approach the children with a perfect solution, they will undoubtedly learn it faster and forever. Whenever you behave irrationally or rationally in any financial situation, mind that children are watching.