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Parents who want to raise financially grounded children should teach them to be good neighbors and find the “middle path” in life, according to personal finance consultant and author Sheila Schroeder.
“If you want to raise grounded children, display grounded values,” Schroeder said in a CNBC commentary.
Schroeder is a regional head of business development at investment advisory firm Wealthspire Advisors and frequently leads financial literacy workshops for people at various stages of life, her profile on Wealthspire’s website says.
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She’s also the author of “It’s Time to Talk: A Woman’s Guide to Navigating Money Conversations,” a recently published personal finance book that aims to help women overcome social stigmas about money.
Helping kids understand money is one of the topics discussed in the book, the publisher’s website says. Parents or soon-to-be parents looking to “raise kids who won’t take their family’s hard-earned money for granted” can do four simple things to keep their kids financially grounded, Schroeder wrote in her CNBC piece.
Children should not be given everything they want just because parents have the means to do so, Schroeder wrote.
“It doesn’t make sense to spend money on things that aren’t important to you just because you have it available,” she said. “And your kids will notice if you do.”
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At the same time, children shouldn’t be unnecessarily deprived of things to teach them a lesson, Schroeder adds. “The key is to strive for that middle path and always return to your values,” she said.
“Having money shouldn’t absolve your kids of their obligations to their community,” Schroeder wrote for CNBC. “You might help them get summer jobs or direct them to shovel the neighbor’s driveway after a snowfall, to show them all the ways we need and help each other in a community.”
Children should also see their parents volunteering and helping their community because they’re more likely to remember what their parents do than what they say, according to Schroeder.
“If community involvement matters to your family, are you showing what that looks like?” she said.
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Children should avoid gestures or other actions that may give off the impression that they’re flaunting their wealth, Schroeder wrote in her CNBC piece.
“Kids understand gradations of class and wealth better than anyone else,” she said. “Being respectful of your audience is a life skill just like any other.”
Pursuing or buying trendy status items could make it more difficult for children to connect with their peers, according to Schroeder.
“Help them see when indulgence or ostentation may make someone else feel less than, which can strain relationships,” she said.
“Kids are obsessed with the ‘why’ in everything, including money matters,” Schroeder wrote for CNBC. “Once your children notice that different people or families have more or less money, they’ll start to ask you about it.”
Parents should teach their children not to make any assumptions about why someone has less money than them, according to Schroeder, and to not judge those people.
“Point out that your kids are probably not going to be the richest or poorest in the room wherever they go,” she said, “would they want someone wealthier to judge them for having less?” Most important of all, emphasize that greater wealth is never a measure of character or values.”
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This article 'Having Money Shouldn't Absolve Your Kids of Their Obligations.' Financial Expert Gives Parents Tips on How to Raise 'Grounded' Children originally appeared on Benzinga.com
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