Your relationship with money is controlled by your subconscious beliefs and thoughts that you have. And it isn’t something you will even be aware of.
Do you always find yourself overspending, making financial plans but not taking the regular action, repeating the cycle of debt, the list goes on……?
If you have unhealthy habits with your money and finances, then the good news is that it isn’t your fault! The decisions we make with our money are driven predominantly by the emotional center of our brain, not the logical part. And the beliefs we hold in life are formed when we are a child, by the age of 7 years old!
The good news is this, you can uncover your beliefs around money. You just need to have the tools to explore them and work consistently and persistently to change your habits to form new lifelong beliefs that will serve you.
Education around money management is something that I am incredibly passionate about. I went into the financial services industry to learn and then educate as many people as I could about how to manage money effectively. As an investment banker, I created complex financial products and I then trained financial advisers and their respective clients on what it was that they were investing in. Getting under the bonnet of what can appear on the surface to be a complex product helps you to really understand if an investment is right for you and how it will serve you. In reality, once you get past the jargon these products are not that complicated!
I have spent the last 6 years educating business owners and high earners about how to make the most of their money as a Chartered Financial Planner. Many of my clients would tell me they would just follow my advice, often blindly, because I was the expert. This never sat well with me. I wanted them to fully understand why and what they were doing with THEIR money. Even if I was advising them of the best place to invest their wealth I wanted them to know why that was the case.
Education and understanding are vital for the long-term success of anybody’s financial plans.
So why then don’t we do more to educate our children on money and finance at a young age? If we build subconscious beliefs by the age of 7 and we can empower the next generation to form much better habits, then surely it is our responsibility to change the cycle?
I want to share 5 simple money tips for you to do with your young children so that you can help the future generation to be more successful with their money than perhaps we are today.
1) Start the conversation young. Money is such a taboo topic in our society today. Talk openly about bills and your earnings with your children. You might even notice that you feel less uncomfortable and form new habits of your own.
2) Get your children involved in money management. We often involve our children in the hoovering, baking, and the laundry? Well, why not when you do your monthly budget (if you do a monthly budget?!). What would this teach them about the value of money? How do you feel about doing a monthly budget yourself? How would it make you feel if you did this with your child as part of their education, I bet you’d learn a lot together and form new habits that serve you all at the same time!
3) Build their knowledge and confidence around money. When you are learning about your finances to grow your own knowledge share those resources with your children. Keep it simple, because money is simple. Show them what a savings account is and how interest is paid. Good VS bad debt. You will also learn and discover things over time!
4) Encourage them to consider investing. You can show them the difference between a bank account and investing in the stock market. Show them that TIME is their biggest asset. The power of time and investing a small amount or what you can afford for the future has a huge impact.
5) Share with them the lessons you have learned about money. Life isn’t straightforward and financial plans are best served over the long term. There are two aspects here, teach your children that they will only learn by making mistakes with their money and that’s okay! They may struggle to budget and get it wrong, if they know this then they have a better chance of shaking it off and getting back on that money horse. After all, being successful with your money also involves thinking long-term, not just day today.
It all starts with your childhood self. If you want to work on your own money mindset and money management skills get in touch with me today.
Now really is the time to focus on your finance and find your freedom. For you and the next generation!
Arrange a discovery call with me, Emma Wright, Financial Coach who is also a highly qualified Chartered Financial Planner. Email me at firstname.lastname@example.org.