5 Things I Wish I Was Taught About Money As a Child
Having money is crucial to enjoying the fine things in life. But this is only possible if you understand how to manage your finances. Getting the basics of financial management should start early in childhood. Money problems in adulthood occur because parents don’t teach their children the essence of financial management early enough.
Here are 5 things I wish I were taught about money as a child.
1. Saving is Paramount
You need to explain the importance of saving to your child early enough. You need to let your child understand that the good things in life come due to saving. Let your child understand the importance of saving even before you start giving an allowance.
Teach your children the importance of a child savings account and how to use it. Go with your child to open their first account and teach them how to fill in the deposit slip.
2. Investing is Crucial
Teach your kids the basics of investing and its benefits. Explain that when you invest you get more money in return. Talk about some of the top options when it comes to investing such as stocks and real estate. Make sure you incorporate some fun in the lessons to make sure your child doesn’t get bored.
3. Money is Earned
Your children need to know that there is no free money. Money is earned through hard work. Let them know that you leave the house every day to look for money for them to live the life they are living. Let them do additional chores around the house to earn some pocket money. Have them make the beds, clean the utensils, rake the yard or run errands for some extra cash. This will help them understand that the good life is earned.
4. Money has to be Kept Safe
Make the children understand that money has to be kept in a safe place, or it might be stolen. Let them understand the concept of banking by starting with a piggy bank at home. Introduce the need for a wallet and credit cards later on.
5. There is More to Life than Money
Explain that money has value but this shouldn’t be the most important thing in life. Teach your children the importance of family and love.
If most of us had these lessons when we were little children; I believe we would be more financially responsible adults.