For many kids, all they ever hear from their parents is, “be careful when crossing the road,” or “do not speak to strangers.” A little later on the time for “the talk” comes along and soon the children are out of the house and facing real life challenges out in the world. But are the kids really ready for this period of their life when they are no longer under the parents’ protection? Methinks no. Most parents fail to teach their kids about money and finances. Thus the children grow up and make many costly financial mistakes. To prevent this, make sure that you have taught your child the following 10 money lessons; both by words and action.
1. Problem solving
Do not be those parents who swoop in and solve problem for their kids every time. I am not saying that you should let your kid suffer alone; rather, let them solve some problems by themselves. This should start at an early age and will prepare them to handle bigger financial problems in the future.
2. Difference between needs and wants
Let your kids understand that needs are more important that wants and they should be prioritised.
3. Wealth requires hard work and determination
This is a valuable lesson that every kid should know. Let them know that you have to work hard for the money you get. Occasionally, let them carry out tasks and then reward them with a little cash after completion; but do not make this a habit. This will teach them the aspect of hard work and consequent reward.
Again, this is a crucial foundation to a good financial future. Buy your child a safe box to save money in or even better, open a junior bank account for them. For teenagers, let them get involved in your efforts to save for college.
5. Money does not buy happiness
Despite the importance of money, it cannot bring ultimate peace and happiness. Teach your children that family, friends and hobbies are the ones that bring lifelong joy. This will enable them to choose careers that they love and not just choose them for the salary they can bring in.
6. No one is financially perfect
Everyone blunders when it comes to money. The most important thing is to pick yourself up, learn from your mistakes and keep going.
7. Strive to be financially independent
Whether you are in college, single or married make sure that you are financially independent. Have your own source of money and bank account where you can save up cash.
8. Investing in knowledge
Let your kids know that education is a crucial investment. Most importantly, it should not end after getting a college degree but should continue throughout life.