My parents never taught me about money! My parents were too busy making money to teach me much of anything. I spent my time studying piano, practicing piano, and playing with my friends. They were children of successful neighbors. Maybe, I learned from them. I do not think so! Saturdays, I spent the day with my Mother at her retail store. What I remember is eating well, because they would bring in prepared food. I learned they worked very hard and they loved what they did! It was what they did rather than what they said that taught me about money. That and a keen interest in the subject made a big impact on me. I made my first buck (actually $2.50) at age 8. Too much was left to chance. Take the time to teach your children about money to prepare them for life.
Here are just a few things you should do to teach them about money.
- Teach your children to count using money (pennies). Follow that up with teaching them to make change. They will learn about money, counting and elementary addition and subtraction.
- Give your children an opportunity to earn an allowance. Then share with them the importance of saving a portion of their earnings. You can share with them about savings accounts, investing and making their money grow.
- They now have money, learned to put something into savings, and next comes how to spend it wisely. Teach value shopping rather than just spending. The most important part is to delay gratification. In other words teach them to pick the right time and price to buy. Teach them to make good choices.
- Share with your children your goals, budgets, and your financial decisions. Explain to them what you go through to make your choice and decision.
- Talk to them about credit cards and debt. How you make major purchases such as furniture, appliances, and cars. Discuss how you pay for these items and how you get the best interest rates and when debt works for you such as when buying a house. Show them how good financial responsibility pays off.
These few lessons can change the next generation. Do not worry if you did not do this when your children were young, there is still time. If you were the children who did not receive this training, do not despair. There is still hope, read my blog and if you find valuable and useful subscribe.
Photo by: Billy Verdin