Parents all over the world spend their lives trying to improve life for their children. Education, sports, culture and entertainment for kids are all priorities on which parents spend great amounts of money and energy. We want to help our kids to follow their dreams. But one thing we could emphasize more (at home and in school) is money savvy.
Most young people still unfortunately have to learn about the world of money the hard way. We make many costly mistakes, need help from time to time, and come to wisdom by trial and fire. As parents, we should show our kids some tough love and really start teaching them the true value of money from a young age. In an instant-credit society where demands and temptations to live on plastic are everywhere, this is a tall order.
Let’s take a look at how we can help our offspring towards a secure future by teaching them five simple principles. Money is like water, it has a strong tendency to flow downstream if you let it; Stay out of debt if you truly want to be free. Don’t be a slave to the culture of paying down debt; Find the flow for your life, that unique spark which makes you want to get up in the morning; We don’t need a lot of money to invest.
One of the hardest things for a young person to learn is to take the approach of the tortoise, not the hare; and the good news is that there is such a thing as a money tree. Yes, the money tree is there for anyone who is willing to water it and let it grow. In this experience-based piece, we will see how we can plant seeds for our kids which might grow for generations. It’s the best gift we can give to our children.
5. Once You Spend It, It’s Gone Forever
In a world of revolving credit, this simple fact seems to get forgotten. Money that flows out, like water from a faucet, never comes back. And the small petty spending really adds up. Kids really want things right now, because they’ve grown up in an instant society. Smart parents can show a child how a new bike they want to buy means other lost opportunities.
Let them work it out on a spreadsheet how many lawns they have to mow or newspapers they have to deliver to buy a bike. Or be frank and explain how many hours mom has to work to earn the amount that the bike costs.