Financial IQ

As a parent, you are a role model for your children. Your money management habits and behaviour have a major impact on them. The best way to raise money-smart kids is to be smart about money yourself, and to talk to them about how money works.
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, you save prudently, spend carefully, invest wisely, and give back to your community; you can rest assured that your child will mirror these actions.
Your Financial IQ, which is simply your ability to solve financial problems, is a very important key to improving your child’s financial literacy. You need to ask questions like:

• Do I plan for the future?

• Are my savings at the level I want them to be?

• Do I have a retirement plan?

• 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.