Delayed Gratification and Financial Planning for Kids: A Guide for Parents
Delayed gratification is an essential skill for financial planning, and it's something that parents can teach their kids from a young age. It involves delaying immediate rewards in favour of long-term goals and can help kids develop better financial habits and decision-making skills. In this article, we'll discuss the importance of delayed gratification in financial planning for kids and provide tips on how parents can help their kids develop this skill.
Delayed Gratification and Financial Planning
Delayed gratification is essential for financial planning because it involves making decisions that are in line with long-term goals. It helps kids understand the value of saving and investing and can prevent them from making impulsive purchases that could negatively impact their financial future.
Help Your Kids Learn Delayed Gratification
Here are five tips for parents to help their kids develop the skill of delaying gratification:
Teach Goal Setting: Teaching kids how to set goals is an essential part of developing delayed gratification skills. Encourage them to set both short-term and long-term goals and help them break down those goals into smaller, achievable steps. This can help them see the progress they're making towards their goals and stay motivated.
Use Allowance as a Teaching Tool: One of the best ways to teach your kids to delay gratification is with allowance. Encourage them to save a portion of their allowance each week and set a goal for what they want to do with that money. This can help them learn how to delay immediate rewards in favor of long-term goals. With the Earlybean app, you can reward your children for doing chores with an allowance.
Encourage Delayed Gratification in Everyday Situations: One of the easiest ways to help your child delay gratification in everyday situations. For instance, If your kid says he wants a snack 30 minutes before dinner, have him wait until the food is ready. He learns there’s a time for meals, and it’s okay to wait a few minutes to eat. Or, it could be having your kids wait to watch a favourite TV show until homework is finished. This can help them develop the habit of delaying immediate rewards for their long-term goals.
Celebrate Milestones: Celebrating milestones can help kids stay motivated and feel proud of their accomplishments. When your child reaches a savings goal or achieves a long-term goal, celebrate the achievement with a special activity or treat. This can help them see the value of delayed gratification and how it can pay off in the long run.
One of the most important things you can teach your kids is the skill of delaying gratification. By showing kids how to wait, plan and save for what they want, you’re setting them up for financial success as adults. So, start today and help your kids develop the habits of saving, investing, and delaying immediate rewards in favour of long-term goals.