Teach Kids the Right Lessons About Money: Here Are 7 Ways to Do It! by 30Seconds Mom
It’s important that parents make sure they are teaching their children the right lessons about money. Where do you begin and how do you teach them? Marlow and Chris Felton are authors of "Couples Money," and a husband and wife team that help couples work through their financial differences and get on the same page. When it comes to teaching your children about money, Marlow and Chris say to focus on these seven ideas:
- Use Real-world Examples: You want to teach children from an early age the basics of earning, spending and saving with their own money. This can be accomplished with age appropriate household chores to show kids how money is earned. You can store that money in a piggy bank or even open a bank account.
- Overcome Old Beliefs: There are a variety of scenarios that contribute to how adults view money, and many of these stem from childhood. Do your kids a favor and educate them wisely while they are young. You do not want your children to develop skewed mindsets based on scarcity or excess. In today’s economic climate, anyone can become financially independent regardless of their upbringing or education.
- Redefine Money: Essentially, money is a form of energy. It is passed between parties to represent intent. Contrary to popular belief, this is not an inherently negative thing at all. Your relationship with money is determined by your beliefs about it. Redefine the value and intentions behind your money. Establishing a positive relationship with money through modeling is the best way to teach your children.
- Don’t Be Intimidated: Rather than being scared by the concept of money, embrace it for its positive freedom-bringing properties. There are complex methods for money management, but explain it to your kids in simple terms. Even for the older kids some concepts of money and investments can be overwhelming. KISS, keep it simple stupid, reigns true. First, establish the basics, then grow their knowledge from there.
- Do What You Love: Plan for the future, but live in the now. Believe in yourself and your passions. The money will follow that with which you are most passionate. If you do not know, follow your flow. When you are doing something you enjoy and lose track of time, that is your flow. When you apply hard work and dedication to a passion, the money will come. Kids need to understand and truly embrace this idea.
- Keep an Open Mind: There are endless perspectives to take on the topic of money. One of the best lessons for adults and children alike is, "live within your means." In our possession-driven society, many individuals take on mountains of debt just to keep up with the latest trends and buy the newest gadgets. Don’t bite off more than you can chew. Have common sense, and track your finances. This is a great skill to teach your kids early.
- Continue Learning: Educating your kids about finances is a great opportunity for you to learn more, too. It can also give you a fresh outlook on money and reassess your perspective. If you feel you have a pretty good grasp, step it up a notch. Maybe begin an investment portfolio and include your kids so they can learn throughout the process. It can be a great way to connect and learn together.
Learn more by visiting CouplesMoney.com.