Are you raising financially savvy kids? Take this short quiz to find out what your parenting style is towards money.
Q1) You are in a super-market and your child picks up a lot of grocery that you think he won’t use ultimately.
A) You let them take it – after all they have their own choices and mistakes to make- and guess what anything that keeps your child occupied is a bonus
B)You keep the bill and discuss how much is used at the end of the week
C)You hate wastage and strictly keep back everything that you think won’t be used.
Q2) Your child picks up a much cherished toy as a birthday gift and the very next day you realize you can get the same at a much cheaper price, elsewhere.
A)Tough luck, prices keep changing – you let her keep it, its her birthday and she was really waiting for this
B)You discuss the difference in price and what else you can purchase with the savings. You jointly decide whether to return and buy from the other place
C) No questions asked- you return and re-buy at the other place
Q3) You notice your child registering on a new website which requires a lot of personal details to purchase the latest new gadgets
A)Kids nowadays are a lot more tech savvy then us – let them decide which web-sites they want to register. In fact you decide to register there too
B)You explain it can be dangerous to share too much information online. You leave it to them to decide whether to go ahead, but monitor their actions.
C)You restrict access to that web-site using parental soft-ware
Q4) Your child is using your I-pad and downloads new apps without your permission
A)Well that’s their Christmas gift this year!
B)You take away the I-pad as punishment for a week and don’t let them play with those apps
C)You write to Apple asking for a re-fund
Q5) You are given an option by your banker to open a savings account for your child
A)Hmm…they can open their own account when a bit elder and earn…now is too early.
B)You take your child to the bank for a visit, show them around and explain how it works. You open the account if they look interested.
C)You open the account, explain interest rates and banking insurance, give them money to deposit and save every month
Q6) Your teenager notices you using a credit/debit card and wants one of her own
A)You discuss with the dad if you can get a junior debit card or add on supplement for kids
B)You explain to them how a credit card/debit-card works let them use yours in a common outing
C)You explain how a credit card works, interest rates on late payments, credit limits and ask them to turn 18 before coming anywhere near a credit/debit card.
Q7) Your child’s best friend gets an I-touch and your little chubby is wailing out his heart for the same
A)You wait for a special occasion like a birthday/ X’mas and get it for him
B)You ask them to save up in a Piggy bank, collect gift money and put in your bit to buy after a while
C)You discuss difference between needs and wants, savings and budgeting. You set targets in terms of grades etc and might buy an I-touch after suitable effort from kids.
Q8) Your child has set her heart on a particular college which is fairly expensive
A)Encourage them to study hard, get good grades and feel proud and happy when they get it. You foot the bill.
B)Discuss their college fund strategy, ask them to save whatever they can from summer jobs and pitch in with your bit
C)Help them to compare college fees between various options, look at post-college income levels, and ask them to take a loan.
Q9) Your child is thinking about dropping out of school and being an entrepreneur
A)You encourage them to follow their passion and let them choose their own paths.
B)You discuss the pros and cons, ask them to parallel finish schooling and help them with initial capital
C)You ask them to prove their revenue model, talk to professors, other entrepreneurs etc, do a pilot launch if possible before dropping school. You don’t lend money but help them with strategy to the best you can.
Q10) Your building is organizing a collection for flood relief
A)You collect everything you can, get your kids to help you organize and drop off everything
B)You discuss charity as a concept, ask kids to go door-to door collecting and make boxes which you all drop together.
C)You ask kids to do a garage sale of old toys, bake-sale etc donate the money to the floods. You make a regular habit of donating for causes your kids choose.
Mostly As: You are a warm and loving parent BUT feel shy and awkward in talking about money or related topics with your kids. You prefer them to grow up and learn their own way. Remember parents are the first role-models for kids and positive spending and saving habits from an early age last a life-time. Believe me they are better off hearing about coins and dimes from you rather then outside !It’s time to open up!
Mostly Bs: You like to discuss and talk over financial decisions with kids but like to give them their own space to have the final say. Perfectly makes sense as long as you remember sometimes parents need to draw boundaries and be a bit strict as well.
Mostly Cs: You are a hands-on-mum/dad who loves to talk, discuss and point out facts and research on all aspects of money and financial literacy. You like your kids to be well-informed and guide them to take smart, money-savvy decisions. Well done, and remember to be patient, explain your logic well and let kids participate to avoid any build-up of resentment.