Your parenting style will affect how your child deals with money later on in life. While you can’t change their personality, it is important to be aware of the effect that different parenting styles have on children’s financial lives.
This article explores three main types of parents and what impact they are likely to have on their children when it comes time for them to set out into the world alone.
The one parent who is strict with discipline and does not give their child a chance to make mistakes will most likely raise children that are very shy. Their financial success later on in life may be hindered because they won’t have the confidence or determination required to push themselves forward in any arena. They could even become so introverted that they find it difficult to communicate at all, hindering them from making important connections out of fear of being judged.
This authoritarian parenting style can also lead to children becoming perfectionists when it comes time for them to take control over their own lives as adults. Because having things just right was what made mommy and daddy happy, doing something perfectly becomes more valuable than simply getting things done enough that no complaints arise; this will definitely be a problem in the long run.
Another parenting style is the permissive style, where parents are seen as friends rather than authority figures. Parenting in this way tends to make kids feel like their own feelings matter more than rules or what other people think of them, which can lead children down dangerous paths if they’re not taught the value of respect and self-discipline.
Luckily, there’s a parenting style that is successful for raising children who become financially literate adults: authoritative parenting. This means that instead of being strict dictators over their kids’ lives at all times, parents take time to listen to what their child has to say about any given situation before making decisions with them on how to handle it . Children raised under an authoritative approach tend to have better grades in school, and are usually more focused.
All in all, as a parent, you should aim to foster a sense of responsibility in your child while still maintaining an open dialogue. This will help them navigate the waters of financial success as they get older, and give you peace of mind knowing that they’re on the right track.