Being a Father or Father figure, provides an opportunity through one’s own actions to instill positive financial values like hard work, generosity, saving, investing and financial responsibility in their child(ren).
“A good Father is one of the most unsung, unpraised, unnoticed
and yet one of the most valuable asset in our society” – Billy Graham
As a financial educator, I believe that Fathers play a very significant role in shaping their children’s financial habits and beliefs. In their acts of provision, guiding and leading their families – the young ones learn a lot about money habits and money management skills through the lens of their fathers.
So, as we celebrate Fathers Day in the month of June, may it also be a reminder on the impact that Fathers can have on their children’s financial well-being.
Be a Positive Financial Example
“A Father is neither an anchor to hold us back nor a sail to take us there,
but a guiding light whose love shows us the way” – unknown
Children’s first teachers are their parents, it is therefor important to lead by example by practicing good financial habits: budgeting, saving and investing. By talking to your children about money and demonstrating good financial habits and informed decision making, you help instill positive mindset around money and help shape their money habits.
Encourage Informed Money Choices
“My Father gave me the greatest gift anyone could ever give another
person: he believed in me” – Jim Valvano
Reinforce the importance of making smart informed financial decisions. How? By involving them in discussions on setting goals and understanding financial priorities. Teach them difference between needs vs wants and encourage responsible spending. As they grow older, guide them in understanding the importance of making wise financial decisions, why they need to research first and do price comparison before making a purchase and making sure to take time to evaluate the pros and cons of different financial options before settling.
Guide towards Financial Responsibility
“A Father is a person who wants to catch you before you fall,
but he instead picksyou up and lets you try again”
– Unknown
Financial responsibility comes with understanding the value of money. Using age appropriate financial knowledge, fathers can teach their children financial skills: teach importance of earning and saving, spending and the power of delayed gratification. As they grow and ready, allow them to take responsibility e.g. do their own banking, create a budget. This provides room for them to learn from their actions and grow in financial responsibility at every stage.
Encourage Long-Term Thinking
“ The quality of a father can be seen in the goals, dreams and aspirations
he sets not onlyfor himself but for his family ” – Reed Markham
One’s goals and aspirations should not just be short term but have a long term outlook. Fathers can help their child(ren) understand that short term financial decisions affect long term financial goals. Teach them how to create financial plans and managing their finances wisely in the short term even as they plan for the long term. Point out the importance of compounding as they save and invest and inculcate a mindset of long term wealth accumulation.
The influence of a father goes beyond the traditional provision and protection. A call to fathers and Father figures to be actively involved in shaping positive money habits of those young ones entrusted to you. Provide them with the right guidance and support, so that each day they may say
“ The older I get, the smarter my father seems to get ” – Tim Russert
In the month of June we celebrate Fathers Day. This is a day we specially take to honor and give flowers to the Fathers, Fathers-to-be and Father figures in our lives. So, during this month, think of those financial values instilled in you. Best way to say Thank You is to ensure you put them into practice and share those values you learnt then with those around you now.
