Be a Money Mentor

This month is National Mentoring Month – a time set aside to highlight the positive results mentoring has on a young person’s life, prospects and outlook.

A mentor guides a less experienced person by building trust and modeling positive behaviors. An effective mentor understands that their role is to be dependable, engaged, and authentic.

When it comes to being a money mentor, it’s a way for young people to have someone on hand that provides support, modeling positive money habits and serving as a living, breathing example of financial wellness.

Offered below are several ways parents, parent figures or others can serve as a money mentor – a positive financial role model – to share and pass down the wisdom you have learned to better assist others.

Provide Chances to Practice

A mentor can provide opportunities for a young person to receive either an allowance or financial gift with the intention of setting up a spending plan for the funds. Perhaps it’s a parent setting up an allowance, for instance. Provide an example of how to set up a simple saving and spending plan each month. This gives a chance to practice saving and budgeting.

Model Smart Purchasing

Be a positive financial role model when it comes to making purchases. Team together to research the lowest cost of a big ticket item like a TV or computer – taking the time to locate the best price from a discount store, coupons, online specials or other options. Point out times when you’ve been tempted to make impulse purchases. The more intentional your actions when making a purchase, the more your mentee is likely to retain these habits.