Putting An End To The Cycle Of Bad Money Management Habits In Black Families

By Yvonne Sam
Contributing Columnist

Something that traditionally has not been a strong suit in the Black family and, simultaneously, a handicap, is passing down healthy money management habits to ensure financial stability for future generations.

However, that is beginning to change in this era of technology, as more Black parents are building a foundation for their children to learn financial responsibility at an early age, hoping it’ll drive their decision-making in adulthood.

In order to break bad generational habits of spending money, it is imperative that parents take an introspective look, to see how they have been holding up, financially. Then and only then, can parents begin to truly pass on wisdom to their child, about good spending habits.

It is never too early to teach young children the importance of saving money. For example, on birthdays and holidays, teach your child to put, at least 25 to 30 percent of the cash they received, into a piggy bank – or, an actual bank savings account. In the course of time, this will become routine, so that every time the child gets some extra cash as a gift, they will immediately think to save it.

Parents should also teach children the value of money, as so many children actually think that money just appears in their parents’ pockets — or as the old folks used to say, “grow on trees”. Be direct in teaching your child that it is not the case.

Think about ways, in which you can make the child work for the money that they are looking for, to buy video games, toys, action figures, or anything else they like. What about a small weekly payout for chores? This way, the child will feel some type of connection, when spending the money that he/she actually worked for.

Bills and budgets should be discussed, openly, in the home. It is typical, in many traditional households, that children are frequently told, by adults, to stay out of “big people business”. On account of this, most parents tend not to discuss financial hurdles, trials that they may be facing, such as making mortgage payments, line of credit instalments, or even the rising costs of bills.

It’s important to show the children how the bills work, to further enhance the way money is obtained. Like, for example, how leaving the lights on, in every room, translates into how much money the family owes on the monthly electricity bill.

On a conclusive — yet cautionary — note, parents, remember to practice what you preach, so that your children will follow, even when grown-up and beyond your reach.

Children mimic everything they see their parents do. Therefore if you recklessly use your credit cards to buy clothes, jewelry, non-necessities or anything on a whim, your children will adopt that behavior, without understanding the consequences of it.

Be the financially-responsible person that you want your children to be.

Aleuta continua — the struggle continues.