4 Financial Lessons You Should Teach Your Kids
October 20, 2011, By Mark Meissner 0 comments
When I was growing up, I admired my dad, looking to him as a role model. But even though he was awesome, there were many things he didn’t know or never took the time to teach me. And so I’m making it a point to teach my kids about money so they can avoid some of the mistakes I had to learn the hard way.
It’s never too early to speak to your kids about money. As soon as they understand that they can use money to buy things, they’re ready to learn how to manage it and how to earn it. If you teach your kids properly about money, you have the ability to set them on the path to financial freedom and happiness for a lifetime. If you fail them—you better get that basement fixed up.
I want my children to be financially independent before they become adults and you should consider the same. The fact is, as a father of four, I cannot support my children forever, nor do I want them to have to support me down the road. When they move out on their own, they are going to be out for good, and able to live a comfortable life free of financial stress and the emotional problems it can cause them and their relationships.
The Saving Lesson
The first and probably most important concept that I’m teaching my kids about money is that you can either work for money or have money work for you. I’ve taught them that if they constantly spend everything they make and don’t save, they will always have to work. If however, they save 10 to 20% or more of everything they earn, that money can work for them to make them much more money without them having to lift a finger.
I use every occasion possible to remind them of this lesson. For example, when taking them on fishing trips I explain to them that I could be working right now if I had spent all my money; instead, I’m fishing with them, and that’s because I’ve saved money, and it’s working to make me more money while we fish.
NEXT: Second Life Lesson
