PHILADELPHIA, PA, August 27, 2013 /24-7PressRelease/
-- As an experienced banking professional, Michael Halikias
understands the importance of financial management. Teaching children about saving and budgeting when they are young can help them to become more financially responsible as adults. But some parents wonder how to start these types of conversations and instill positive habits in their children. A recent article
in Time focuses on some simple ways that parents can help teach their children about money management.
Children are like sponges, constantly absorbing information from the world around them. Whether parents realize it or not, their children have probably learned a lot about money just by watching them. They watch how parents pay for things when going out, they listen to arguments over spending, they see them pay bills each month. As they get older, they gain a better understanding of whether their family is wealthier or poorer and how this affects their lifestyle. All of these things impact them.
It is important for parents to set a positive example for their children. If they are stressing the importance of donating to charity, they should make sure that it is something that they are actually doing themselves. And as the article notes, "you can't buy a new Porsche every year and then try to explain that material things won't make you happy." Following through with the same guidelines and principles they are teaching their children is important.
Another key point in teaching children about money is to actually talk with them, not to them. Engage in meaningful conversation about earning, spending, saving, and other topics. Children will take more of an interest when they do not feel as though parents are lecturing to them. Allow them to ask questions about things they do not understand, and pose questions to them as well. Make sure to phrase things carefully, however, so that children do not get the wrong message.
Many parents agree that giving children an allowance is a good idea, but they often disagree about the right way to go about it. Giving children a set amount of money and explaining that once it is gone, it is gone, can help them to learn about spending wisely. If they run out of money mid-week, do not give them more. Bailing them out negates the activity of teaching them how to budget and save. It is also helpful to allow children to take an active role in earning and saving money for something that they truly want. If they want a new bike, parents can offer to pay for half and then tell the child that they must save up the other half. This will instill in them a better work ethnic and the realization that not everything is handed to them and they must work for what they want.
Talking to children about money is something that parents must do continually. It is not a once-and-done conversation. "Opportunities exist all the time to talk about money with children," says Michael Halikias. "Help them set up a savings account at the bank and take them to make deposits on their own. This will not only teach them about how the bank works and managing their money, it will also help them to start building their savings for the future. Children watch everything their parents do, so set a positive example and instill in them good habits." Michael Halikias encourages parents to look into what services their local bank offers for children.
is an active member of the banking and real estate industries. His family owns several businesses in the Chicago area and he assumes responsibility for managing the family's financial assets. He has become skilled at negotiating the stock market and often produces returns that outperform professional investors. Philanthropy is a large part of his life and he helps to run the nonprofit Halikias Family Foundation and is actively involved with the Greek Orthodox Church.