Do you realize there are money lessons we should teach our kids? Teaching our children about money lessons early in life will have a dramatic yet positive impact on so many areas of their life when they become adults.
If we as parents choose not to do so we will see those results play out also in our kid’s lives, as they more than likely will struggle with money issues for most if not all of their adult lives.
You can start out as early as the age of 7 teaching your kids their first financial lesson. This starts with something as simple as rewarding them with an allowance for doing perceived work around the house. This will teach them the importance that hard work renders pay. They also can learn how to best manage their allowance as time goes on and they get older.
Children are easy to teach at an early age and you will be surprised at how fast they comprehend things. I would like to share with you some of the significant lessons that children can learn from us relating to money.
Lesson No. 1:
Teaching them first about the value of money. There are studies that suggest that as early as 7 years old kids should be taught well about the value of money. Why? Studies indicate that if kids are taught at this very young and tender age they are more likely to be successful financially since adult money habits are dependent on what they have learned from their parents during the adolescent years.
Lesson No. 2:
Teach them about the value of need over want. Kids should be taught that it is important to spend money on things that are needed, than those being wanted. Teach them that if wants can be purchased responsibly after needs are met, then that is the mindset they should carry throughout their adulthood.
Lesson No. 3:
Teach them about the value of saving money. Saving money plays an important role in our daily life as well as our future. This is where our net worth is determined.
If we can empower children with the idea of saving money starting at a very early age and show them on paper how much they can have saved when they are our current age, we stand a chance to break the terrible detrimental financial cycle that many young adults find themselves in.
Lesson No. 4:
Let them learn from their own financial mistakes. This goes back to allowances. There will be times when you find that your kids will spend their money for something not necessary at all.
You may from time to time let them experience the consequence of irresponsible spending and then use that as a teaching tool so that they understand their way of viewing and spending money is not the right way.
By doing this, you allow them to learn from an early age the consequences of being irresponsible with money.
Lesson No. 5:
You have to become a role model. This means you have to lead by example when it comes to your finances. Kids are very perceptive and they watch everything their parents do and say trust me! Be willing to make effective choices financially so that your kids see what it takes to be financially responsible on a consistent basis.
All of these money lessons should be taught to your kids as early as possible. You should understand that whatever seeds you plant now will be reaped in the future. Therefore, when you plant good seeds for your children as early as now, in their future you will see wonderful producing fruit financially.
So, what are some money lessons you have taught or plan to teach your kids? Please share your thoughts.