Good morning my fellow Millionaire buddies I apologize for not posting yesterday but my family has experienced a death of my Step-grandmother who past away this morning at 10:05 this morning and as I am writing this post I have learned a lot from her as far as money and investing. So this post is in honor of her. And I am letting you know that there are going to be affiliate links throughout the post.
So I do believe that we left off in last night blog talking about how to talk to your :
SAVER: The most important thing to remember that children in this age group want to be good at things. As they start being good at this they develop a taste of showing off their new skills. This developmental really needs to show up in a huge way for SAVERS. They are so proud of their new skill to save money, and they are; looking for you to be proud of them too. So if you have a Saver, be sure to praise his skill to save his money. It really is a great skill will serve the children well as they get older.
But there are going to be some challenge with savers is that they tend to hoard or not spend their money. They do not feel the need to spend it, but they will not even share it, and they won’t necessarily have a plan for what they want to use it for there with it. Savers just like having that money and knowing it’s not going anywhere.
Your Saver also likes the sense of control that comes with saving money. This way they may be getting upset or having anxiety when you make a suggestion they spend his money on a gift for a family member or tell them they need to buy there own video game. He might do those things on his own, but he wants to be the one making the choice, not your’s mom and dad.
A saver will also struggle with having a clear picture of their financial world. They have this crazy thought that they have little to no money, with a feeling that they are going to run out of money. when in fact they have healthy stash tucked away somewhere. If your child is a Saver, ask them how they have. They will either know how much they have to the penny or much they have saved up and they give you a low number of what they have. Either way, there’s an underlying concern that they have limited resources and they are reluctant to let any of it go.
The good news is you can help ease some of your saver’s anxiety about money, by giving them a visual way to track their income and outflow. Older children might do well with a chart or even a journal that can act as a kind of ledger. Have your son and daughter make four columns on the page- one for income, one for saving, one giving, one for spending. They can use this chart to keep track of where their money is going and you are able to help him see how much money he really has.
The young children can use an even more visual way of tracking their money. By giving the child three small envelopes or buckets or even boxes.-one for income, one for saving, one giving, one for spending. Every time you hand your son or daughter their allowance help her decides how much should go in each envelope or bucket, making sure they put something in each one.
So regardless of your child ages, your young saver will need a lot of constant encouragement to avoid let them form a relationship with money over healthy relationships with family. So if they best ask them to go shopping at the local mall but she very hesitates because she does ‘t want to spend her money, so have her take a much need look at her actual cash on hand and help her to figure out how much she would feel comfortable spending at the mall. Help her see that saving money is a tool- by saving money on thing that doesn’t matter to her, she has money to spend on things at the mall run with her best friend and letting her know that saving her hard earn allowance for the sake of just having a lot more money isn’t a really healthy goals.
SPENDER: So you just learned that your daughter is a spender and there is no time like the very present to use the allowance money for some great purchase.
Spenders know how to enjoy every moment, and money is their ticket for doing just that. Don’t forget to add in the fact that kids at this age aren’t ready to think abstractly, and you have a nightmare on your hands.
You might also fund out your spender runs through her allowance in a matter of what seems like minutes, not because she is buying stuff for herself but because she bankrolling her whole group of friends. I know that my stepdaughter Andrea has no trouble with paying for thing for her sister’s as if its nothing at all. A child who is a spender are very generous sometimes they are way too happy to spend money, everyone.
This is one of those money personalities that will lead to all kinds of fights and conflict between you and your children. If you are not a spender, your children habits can seem very careless and very irresponsible. And what if you’re a spender also you may find your self still getting a little frustrated by the lack of balance between you and your child’s spending ways and their ability to save anything. These fights and conflicts make it very highly tempting to tell your child that there being reckless or very immature, and you will try and take control over his spending, or even cut off his allowance completely.
Just keep in the back of your mind that your spender children really and completely enjoy being a spender. They truly enjoy seeing themselves as a very generous friend a fun-loving kid, and a person others want to be with. And like it or not your child will be right! He is more in likey all those things. So you if you become too critical of his spending, well, he will take it personally.
The key to helping a spender learn good money management habits id to work with those great qualities the generosity, the love of a good time, the joy he gets from giving gifts and treating his friends and family. When your spender sees the allow
the allowance as a means for being able to do good in his world, he’s going to get on board with any money plan you help him create.
I am suggesting a three-pronged approach, The first one is the saving plan . Spender are all about the “here and now ” in their thinking, so they need you to nudge them or convince them it there idea of delayed gratification. When talking with a Spender, we prefer to replace the term saving with future spending plans. For spenders, this little subtle change in the language helps them see the future as a great opportunity to do something cool with their money, And that will help them be more inclined to set aside a big chunk of their allowance every week. So get your child thinking about the one thing he wants – rather it is a brand new bike, a cool Lego set, or the latest hottest make up on the storage market. Figure out how much it going to cost, and then determine how much he’ll need to set aside each week or month to get that item.
The ability to set money aside towards a goal with help with discipline herself to meet it and it will be the set of skill they are able to develop.
The next step in the giving plan. Your generous nature of spender makes this a very painless process they are happy to give their money away. But you are still able to instill the sense of intention and charity in your mind by helping them choose a cause that means something to them. When Jakob was diagnosed with liver diseased a few years ago, Our spender son Keegan, started giving a bit of his allowance to a charity that raises money for giving a bit of his allowance to a charity that raises money for liver disease and something that was happening in our lives made it easy for him to donate to the liver foundation. That personal connection between his giving and something that was happening in our family which made it easy for Keegan to set side money in honor of his brother.
This also can be done if your child plays the sport or is an animal lover he finds a foundation to donate to so just talk to your child about what he loves and how he is able to help out.
Finally, your child needs a healthy spending plan . This will be really easy for the spender, but instead of just handing over his allowance and telling him he can do whatever he likes with the chunk set aside for the spending, asking him to talk through purchases with you. If you know he buys nachos for the whole crew everything they go to the local pool easy fix suggests that he take only enough money just for himself that way he is not the sugar daddy for the whole group. But do your best to give him a good bit freedom with his spending and it added a bonus if he works really hard with keeping up with the saving and giving goals you’ve set together, he needs to have the freedom to do what he wants with his spending money, even if something makes choices you’re not crazy about .