10 Things We Can Teach Our Kids About Money
To finish our series on money, I want to give you 10 things we can teach our kids about money. I know for some of us it’s not easy to talk about this with our kids if we struggle with this ourselves. Studies do show that children with savings accounts do have less stress and more confidence for their future. I guess you can say it’s a wakeup call for many of us.
The problem isn’t the money itself, the problem is we’re not teaching our kids about money. That it is just a piece of paper, but really the habits or beliefs we have about money bring it to life.
So here we go:
1) Time is on their side.
Time + money + compounding = wealth. Every child deserves to be taught this equation. Whether or not they understand it now doesn't matter; they will learn it as time goes by. So stop spending on your kids and save for your kids.
2) Don't be naïve about money.
It's too costly! Learn all you can as fast as you can. Learn from other people's mistakes, and allow your kids to make money mistakes early in the comfort of your home. Make sure your kids know all there is to know about money before they leave the nest.
3) Practice the 10/10/10/70 concept.
Never let your child spend all they have. If you do, you are teaching kids to live paycheck to paycheck. It's been proven that you cannot create wealth by spending 100 percent of what you earn, so make sure that your children don't create that habit. For every dollar your child receives, have them give 10 percent as tithe. Teach them to invest 10 percent into their savings account; and live within their means by only spending 70 percent wisely.
4) Instill a strong work ethic.
Teach your children to give all that they have, 100 percent of the time.
5) Budgeting is like dieting.
Money and food go hand in hand: control one and you can control both. Spending is easy, but saving money takes a plan. Help your children make a plan for their money. Teach your kids that we are all responsible for our actions. We cannot control what others do, but we have 100-percent control over what we do and say and how we act.
6) Everyone has a money personality.
Do you have a “Spender” or a “Saver”? Find out and then realize each has something to learn.
7) Learn to earn.
Chores, chores, chores, are a good way to begin showing your kids how to handle money. That with a hard work ethic they will get paid for the results. It teaches them that it does not fall out of the sky or pop out of ATM machines.
8) Do what you love and love what you do.
Time is a wonderful thing. Help your kids develop their strengths and talents. Guide them to careers that fit who they are and what they love. Explore many opportunities with them in their youth. The more things they decide they don't want to do, the closer they get to what they do want to do.
9) Set money goals.
Setting goals can teach children how to ask for what they want without expecting others to hand it to them. As parents, we can help our loved ones succeed, as long as we do not do it for them. Teaching your child to set goals, take action and work for results is essential to their future successes. It will teach your child how to make decisions, be disciplined and take action toward the goal. This will help to create strong self-esteem and confidence in your children.
10) Pray
It is crucial during this time in your child’s life to pray with them over their finances. If they sit with you in church service, grab their hand during the offering prayer. Let them see by example of who your Source is during good and hard times. Kids think money will always be there but this teaches them about the One who will be there through it all.
What are some things you have taught your kids or want to teach your kids about money?