What financial lessons have you learned from your parents? As you got older did you have to unlearn any of them? Parents around the world do the best they can with the information they have. Naturally, the goal is for each generation to progress further. Sometimes, though, money can be a taboo topic or a neglected topic. What can we do to teach our children about money?
Be A Good Example
No matter what we say children will inevitably follow what we do. If we tell them to save but Amazon packages arrive every day, then we may have to adjust.
Teach Them To Understand The Value Of Money
Value meaning work. Children should learn to equate money with effort. Money can be earned in a variety of ways, but children should not imagine that it just grows on trees. Note: While encouraging children to earn money they should not get it confused with required household chores. Little Johnny or Suzie has to wash the dishes and clean their room whether they are getting paid or not. Activities that promote earning money should be outside of normal household requirements. Maybe a child can assist in doing their parent’s work. Perhaps filing, scanning, or shredding anything that helps the child to understand what is involved in the parent’s working and earning money.
Allow The Child To Manage Money
After your child has worked for money it will mean something. When you’re in a store and your child sees a new toy and asks for it, say, “Sure! You have money. If you have enough you can buy it for yourself.” The child will quickly reflect on the work required to earn that money and, in most situations, I’ve seen young ones say, “It’s ok. I don’t need it.” But if the child does choose to purchase the item with his or her hard earned money that’s ok too. The lesson is helping your child to understand how money works and to manage it well.
Have Money Lessons
Talk to your child about saving, investing, and credit. Teach your child about ways and opportunities for their money to grow. Children are very smart. Encourage them to learn about how money works including practical tips like what is a check, a debit card, and other everyday terms. They will be better prepared as they get older and less likely to be taken advantage of by quick talking shark lenders that prey on young ones.
Encourage Your Child To Share
Encourage your child to share at least some of what they have with others. Then they too can experience the joy of giving and also understand and appreciate how much mommy and daddy share with them.
Keep Educating Yourself
Our parents did the best they could with us and we try our best with our children. One advantage we have now is the wealth of information available. If we’ve never owned a home or a business that’s ok. We can learn about it by reading or listening to books and expose our children to the options. That doesn’t mean a person must choose every option, but being aware and then deciding for oneself is a beautiful opportunity that limits regrets. Money can be a source of stress or a tool to live one’s dream. We can help our children have the latter by teaching them how money works and how to manage it effectively. It’s never too early to start.
Until Next Time,
Crystal
Crystal Hicks is an accountant with well over a decade of experience in tax, finance, audit and accounting in New York and Florida. Each week in Money Talks, she’ll share her advice to help individuals to navigate their financial challenges!
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