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.
Money Mentoring Starts Here
Explore GreenPath’s LearningLabLearningLab+ for all things financial. We bring you well researched courses and tools to enable a better understanding of money for a healthy financial life.
Be Transparent
Are there real stories you can share about any bumpy roads you’ve experienced when it comes to finances? Perhaps your credit card balances got out of control. How did you navigate through to get on a smoother path? If you fixed the situation through belt tightening, talk it over. As appropriate, review any bills you receive each month and share the best way to become responsible for prioritizing bills. Reviewing financial statements and bills together provide valuables insight when it comes to making financial decisions.
Emphasize Education
Conduct a few formal sessions where you demonstrate how to read monthly bank statements, balance a checkbook, create a budget and pay bills on time by setting up auto payments.
Share resources or sources of trusted information about saving and becoming financially competent. Whether it’s a bank, credit union or other institution, explore opening savings accounts or other simple savings vehicles. For the basics about investing, check out the Alliance for Investor Education.
Online financial webinars can also be useful. Be sure to suggest looking into debt management plans and financial counseling from a trusted national nonprofit like GreenPath.
Money Mentors Matter
Money mentors teach by example.
The healthier the financial behavior you demonstrate, the more likely of a financially stable future for your mentee.
Looking to get your finances on track, or looking to help get someone else on firmer financial footing? A trusted national nonprofit like GreenPath can help support money mentoring. Connect with a caring counselor today.
