Habits We Should Teach Children About Money
Many parents start learning about financial literacy as an adult and this is why some of them might not see the value of inculcating their children with money values. A lot of parents miss the point that the earlier their kids learn about money, the more they will benefit from it when they grow up. Here are some tips on how a responsible parent can teach their children about financial literacy.
Teach Them the Value of Saving Early On
Saving is one of the toughest financial disciplines that any person would have to learn in his or her lifetime. However, you can somehow help your children learn how to save when you teach them how valuable of a skill it is later on in life.
If you give your children allowance, teach them to pay themselves first. Always tell them that they should not spend everything they receive, but they should put away some amounts for later use. Of course, all of your kid’s needs are taken care of, so you should adjust to what motivates your kids to save. If you see that your kid is making progress, be sure to reward them with a day out or a trip to a theme park, whatever you can give them.
Teach Them to Work for What They Want
Even some of the wealthiest parents taught their kids to work for what they want. In today’s world, almost everything is there in an instant whether it is new clothes, food, movies or just anything that you used to walk miles for. It is more crucial to teach your children the value of hard work and its direct connection with money.
In a study by Steve Siebold wherein he surveyed around 1,200 wealthy parents about what they teach their kids, he found out that rich parents teach their kids to be rich themselves. He says that while middle-class and poor families seek comfort and play it as safe as they can, it is not unusual for rich parents to teach their kids that life is a game where you should step out of your comfort zone and play boldly and fearlessly.
Teach Them To Wait for Things They Want
Patience is a very valuable virtue that will take a lot of time to learn. That is why it is very important for you to teach your children the value of patience early on in life. Learning how to delay gratification is a skill that is very in demand in today’s society where everybody demands everything in an instant.
Teach your children that when they come with you to the mall, they do not always have to leave with something at hand. If they keep on asking you for that toy that they want, tell them that they will have to show you good grades or wait until Christmas or their birthdays before they can have it. Moliere once said that “Trees that are slow to grow bear the best fruit.” Thus, it is only with a cultured value of patience that your child will learn its value and benefits.
Let Them Have the Right Relationship With Money
Rich people educate their kids by letting them solve problems themselves and teaching them the value of enhancing other people’s lives. When done this way, the child will learn to see money as a powerful and positive weapon instead of something that they have that they can use against the many. The more they get exposed to the correct values of handling money, they will start to see money as their friend and not as their enemy.
Rich people do not even inculcate elitism in their children, contrary to what middle-class and poor parents might think. The truth is, they are teaching their kids how to see the world the way it really is without sugarcoating anything.
Teach Them How to Compare Price, Quality, Features and Where to Look for Deals
Maybe your child has been pestering you for quite some time about getting a PlayStation 4. While you want your child to be patient and to save, that time has to come too. When it does, you might want to scout with your child online and see if there might be some slightly used PlayStation 4s on sale which is offered for a steal price.
Sometimes, your children will blow up their money on things that might frustrate you. When this happens, teach them about their mistakes and let them learn from it. When you do this, your children will remember their financial mistakes and will not do them again in the future.
Financial literacy is not an easy topic, and it might be even harder for kids. However, a lot of lessons have been laid ahead of us and all we have to do is pick them up. You no longer have to reinvent the wheel since a lot of kids have already been raised to be financially smart. Do you have any other tips? Share them with us in the comments below.
More in Investments & Savings
You Will Be Surprised Which State in the US Has the Highest Credit Card Debt
Using credit cards is such a normal part of the American way of life that most citizens do not stop and...September 20, 2018
Why Women Entrepreneurs Have Greater Success With Crowdfunding
One very big hurdle faced by woman entrepreneurs with ideas, is accessing adequate start-up capital. Women face too many disadvantages from...September 19, 2018
Here’s the Low-down on How The Super Rich Travel and Unwind
For millionaires, multibillionaires and celebrities, vacations and travel goes beyond just seeing places. Quite a few from this lot like to...September 18, 2018
Why IRAs Have An Extra Edge Over 401(k)s When It Comes To Your Retirement
For most Americans who are employed, a 401(k) is the preferred savings option. Of late, the bulk of retirement savings are being...September 17, 2018
The Johnny Depp Story: What Happened To All His Riches?
Who doesn’t know actor Johnny Depp? We loved him as Jack Sparrow in Pirates of the Caribbean or as Edward in...September 14, 2018
How You Can Get Yourself A Good Student Loan
Not that the word ‘good’ can be used to describe any sort of loan, but not all loans need to be...September 13, 2018
Crowdfunded Weddings are a Thing. Here’s How You Can Do It
People crowdfund to raise funds for just about everything and anything, including weddings and honeymoons – the idea isn’t entirely out...September 12, 2018
All You Need To Know About NYU Medical School’s Revolutionary Tuition Waiver
The new class of hopeful medical students from the School of Medicine, New York University, attending their white coat ceremony –...September 11, 2018
These Fashion Houses Went from Bankruptcy to Billions – Part 1
In fashion, everything is in a flux and nothing is certainly permanent. Even if creative directors leave their posts and the...September 10, 2018