One of the lessons you should never keep away from your kids is money management. You need to teach them how to make money and how to manage it as well. Most parents don’t consider this as an essential lesson to teach their kids, and it is as important as training your kid’s moral teachings.
What are things you should teach your kids about money?
Stay away from debt
Most people you probably see go into bankruptcy today is as a result of money mismanagement which sometimes leads to debt. Teach your kids never to try going into debt. It can only occur as a result of money mismanagement and borrowing from another source.
Let them get to know what being in debt can do to someone. Tell the story of people that you know are battling with debt and what it has done to them. While doing that, don’t ever try to make a mockery of those but let your kids see the message in what you are trying to pass across.
Save and Invest
No time is too late or early to teach your kids on how to save and invest their money. Out of the money you are giving them, encourage your kids to take little out of it and invest it. Teach them on how to live a simple lifestyle. You need to let them know all things are good to have, but not all are necessary and important.
They should understand that their money should be spent on more important things. Let them know that those who are successful financially live below their means. You need to teach them this through your deeds.
Tell your kids the likely amount you earn, how you spend your money and how you save. They can learn from it as it will be a challenge for them to do.
Living a low lifestyle doesn’t mean you don’t have the money or you are poor. The secret of successful people or financial mogul is that they don’t live an extravagant lifestyle. Check out people like bill gate and Mark Zuckerberg who often go out with one pattern of dressing.
One thing I’ve got to understand about the two and some others is that they have the money to show off, but they realize staying calm and low reduces attention and cut the cost of money they have to spend.
Teach them to be disciplined
Most parents go ahead to do the saving for their kids. It isn’t the right thing to do. The best thing is to get a saving box for your kids and let them do the savings. At the end of the month, you can call your kids and open the box to see the exact amount they have been able to save.
Give accolade to them and as well motivate them to do better. You have in one way, or the other taught them how to save on their own without depending on your help. That’s merely the simplest definition of financial independence.
Conclusively, with all the tips listed above, you should as well let them know the difference between need and want. All these will help them in having a healthy financial lifestyle.