In today’s materialistic world, it can be challenging for parents to raise children who aren’t spoiled. Children are bombarded with advertisements for the latest gadgets and trends, and it’s tempting for parents to simply give in to their demands. However, research shows that spoiling children can lead to entitled and self-centred adults who lack financial responsibility. To overcome this issue, here are some pieces of advice that can help instil positive qualities like generosity and financial literacy in the next generation.
Teaching the Value of Money
One key strategy is to talk to your children about money from toddlerhood. Very young children can begin to grasp basic concepts like the difference between wants and needs. As they grow older, parents can explain where the family’s money comes from and how it is budgeted. For example, foster carers could explain that they receive a foster carer payment to help with the costs of raising a child. With real-life examples, children start to understand that money is a finite resource that must be managed carefully.
Another way you can teach children the value of money is by taking them with you on household shopping trips. Once at the supermarket discuss financial decisions appropriate for their age. A 5-year-old can help compare brands at the supermarket, while a 10-year-old may research holiday accommodation options within a set budget. Hands-on learning gives children a tangible understanding of money.
Allowance and Paying for Chores
Around middle childhood, an allowance can be a useful tool. Parents are advised to frame allowance as a basic payment for being part of the family, not payment for chores. Necessary chores like tidying a room should not earn money. Instead, children can do extra tasks or neighbourhood jobs to supplement their allowance. Starting with small amounts like £1 per week, parents can teach children to save a portion, spend a portion, and donate a portion to charity. An allowance provides real-world money management practice. As children grow older, their allowance can increase, but it should still require some budgeting. Requiring children to buy some of their own non-essentials also prevents entitlement.
Discussing Family Finances
Many parents are reluctant to discuss money issues with children to avoid burdening them with adult concerns. However, many experts argue that talking openly about family finances – at an age-appropriate level – reduces anxiety and promotes understanding. For example, a parent could explain to their 12-year-old biological child that money is tight this month because they need to repair the car. Children see parents face difficult money decisions, too, building empathy. Open communication teaches children that wants must be balanced with financial realities.
Modelling Generosity and Gratitude
More than what parents say, children are influenced by what parents do. Modelling generosity, like donating time or goods to charity, teaches the intrinsic rewards of giving back. Volunteering as a family provides meaningful time together while helping others. Children also notice their parents’ daily gratitude for what they have. Rather than complaining about an old car, parents can express thanks for reliable transportation. A habit of gratitude makes children appreciate their own comforts, counteracting entitlement. With guidance, children become grounded in non-materialistic values.
With patience and the right techniques, parents can avoid raising spoiled children, even in an affluent society. Teaching money management incrementally from toddlerhood up equips children with life skills critical for their future success and well-being.
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