My parents never talked about alcohol, sex, or money.
All three I had to find out on my own, learned what a hangover was after teen drinking with many high school buddies.
Anything with sex I learned from my friend and sex class. The only lesson my mom said was, “Don’t Bring No Baby in this House”.
I choose to be different here; this article will speak on the money lessons I teach my children, and you may want to teach your children as well.
As a guideline to coach them along the way, not forcing these lessons down my kids’ throats but wanting them away and knowledgeable, let’s get it started.
Money Lesson #1
Kids are eager to learn and grasp ideas more readily than adults can and will at a young age. For instance, at 5, I taught my daughter where the money comes from and how to pay for certain things.
Even what a stock is and how money grows, teaching her patience and delayed gratification regularly. For example, when it comes to standing in line at a grocery store teaches patience or delaying whenever she wants a gift.
In turn, when it comes to money, it will help her understand that patience will work when it comes to stocks and looking for deals.
Or just saving in general.
That way doing and saving together can help your child understand the importance of money and how to keep it.
Money Lesson #2
Many people, not just kids, learn better when given it in story form, for instance, The Richest Man in Babylon or Rich Dad Poor Dad.
People know a lot simply because it told a story and, in doing so, gave value as well. Or take the bible; a lot of the “Lessons” are described in story form to help us understand it better.
So with that being said, that’s why I say don’t lecture your kids when it comes to explaining money to them; give it to them in story form.
For instance, telling your teenager that credit card debt is wrong, won’t hit as hard.
Versus if you say a friend of mine could not get a house because of debt. This shows having too much debt will prevent you from obtaining specific items.
(FYI, I’m an advocate for no bad debt obligations).
Money Lesson #3
Another money lesson that should be done is to use real numbers, which I think is better than a made-up example.
I even remember, as a kid seeing an example of something that made it more believable for me.
Saying if you save for retirement is good for you versus saying if you invest $500 a month at an 8% interest rate between the ages of 25 and 65, you can retire with over $1.5 million dollars.
That puts a better impression on your child and makes it more obtainable and realistic for them. A site can help you calculate how much you could have by retirement if you put in the percentage, the amount saved, and length of time, called investors.gov or any other investment calculator.
Money Lesson #4
By now, you should understand that more is caught than taught by kids. They learn more by seeing and doing than actually lecturing them (even though that must be done).
The next money lesson is to keep money fights between you and your significant other.
Don’t let the kids see that; instead, if your child wants something and you feel it may be a disagreement.
Tell the child you will have to discuss it with your significate other to make the decision. It shows that the decisions you make or more logical than emotional.
Money Lesson #5
The last-year-old age advice that I feel kids need to learn early is that don’t try to keep up with the Joneses, aka your neighbors, friends, or people on social media.
It’s hard not to do that, especially when it comes to social media.
It is tough not to do it. If you can do that, you will be happier, and your kid will be more satisfied.
Yes, once again, I know it is complicated with social media, but please try to avoid that trap and teach the kids that your life will be way better. Also, avoid looking down on others who have less than you. Stay away from that behavior, especially when social media is not as accurate as kids think.
Conclusion
Even if you can teach your child/children one of these lessons it will help them greatly in life, and will be years ahead of their peers and in a better position than you were.
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