Delayed Gratification and Financial Planning for Kids: A Guide for Parents

Delayed gratification is a skill every parent should teach their kids from a young age. It helps them understand the value of saving and investing and prevents them from making impulsive purchases that could negatively impact their financial future. In this article, we’ll provide tips on how parents can help their kids develop this skill.

Delayed Gratification and Financial Planning

Delayed gratification involves delaying immediate rewards in favour of long-term goals. This essential for financial planning because it helps you make decisions that are in line with long-term goals. Here are five tips for parents to help their kids develop the skill of delaying gratification:

1. Teach Goal Setting

Teaching kids how to set goals is an essential part of developing delayed gratification skills. Encourage them to set both short-term and long-term goals and help them break down those goals into smaller, achievable steps. This helps them see their progress towards their goals and keeps them motivated.

2. Use Allowance as a Teaching Tool

One of the best ways to teach your kids to delay gratification is with allowance. Encourage them to save a portion of their allowance each week and set a goal for what they want to do with that money. This would help them learn how to delay immediate rewards in favor of long-term goals. With the Earlybean app, you can teach your kids the value of work and money with a task-based allowance.

3. Encourage Delayed Gratification in Everyday Situations

One of the easiest ways to help your child delay gratification in everyday situations. For instance, If your kid says he wants a snack 30 minutes before dinner, have him wait until the food is ready. He learns there’s a time for meals, and it’s okay to wait a few minutes to eat. Or, it could be having your kids wait to watch a favourite TV show until their homework is finished. This would help them develop the habit of delayed gratification.

4. Celebrate Milestones

Celebrating milestones can help kids stay motivated and feel proud of their accomplishments. When they reach a savings goal or achieve a long-term goal, celebrate the achievement with a special activity or treat. This would help them see the value of delayed gratification and how it can pay off in the long run.

One of the most important things you can teach your kids is the skill of delaying gratification. By showing kids how to wait, plan and save for what they want, you’re setting them up for financial success as adults. Start with Earlybean and help your kids develop good money habits today.