Financial IQ
As parents, you are role models for your children. Your money management habits and behaviour have a major impact on your kids. The best way to raise ‘money-smart’ kids is to lead by example, enhancing your financial management skills.
Children learn better by imitating our actions. Thus, if your child observes that you are frivolous with money and constantly struggling to make ends meet, that would most likely be the path he would tow, leading to a lifelong battle with managing his finances.
However, if you are responsible with your money, save prudently, spend carefully, invest wisely and give back to your community, you can be rest assured that your child will mirror these actions.
Your ability to adequately answer these questions will determine how financially fit you are to teach your child the money management skills he/she needs and will use for the rest of his/her life.
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Do I plan for the future?
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Are my savings at the level I want them to be?
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Do I have a retirement plan?
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Am I financially prepared for the future?
Your ability to adequately answer these questions will determine how financially fit you are to teach your child the money management skills he needs and will use for the rest of his life.