Thursday, December 02, 2010

Be a Good Example

"Setting an example is not the main means of influencing another, it is the only means.” ~ Albert Einstein

Since becoming a parent, I've learned that my actions have much more effect than my words. I am the first to admit, my actions don't always match my words, especially with respect to a clean room. Fortunately, for financial situations, our actions match our words over 95% of the time. Here are some areas our daughter has learned from our examples:

  • Save early and often. We have already opened a UTMA bank account for our daughter. Periodically, we have her put money she has saved into the account. At six years old, she has over $100 saved.

  • Live below one's means. Sometimes we don't buy things even though we have the money to cover the cost. We explain that we don't want to spend money on an every item we want.

  • Make choices. We routinely explain that we don't have enough money for everything and that we need to make choices. Sometimes, we demonstrate by spending on choice A over choice B.

  • Invest in stocks. I've opened a UTMA brokerage account for our daughter. Currently, the funds are invested in CDs. In the future, I will work with her to buy some stocks.
  • I know many of my financial habits were developed based on what my parents did, which happened to be consistent with what they said. In my case, the acorn didn't fall far from the tree:-)

    For more on Crossing Generations , check back every Thursday for a new segment.

    This is not financial or parenting advice. Please consult a professional advisor.

    Copyright © 2010 Achievement Catalyst, LLC

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