5 Money Lessons to Teach Your Kids
Valuable money lessons to teach your kids that you can start early
These are money lessons to teach your kids, that can even be taught as early as preschool. We all know that teaching financial literacy is missing in our schools, but it doesn’t have to be missing in our homes.
For many of us, financial literacy wasn’t taught to us, because our parents didn’t know, so we had to figure it out on our own. But now, there are so many resources available, we have an opportunity to change the trajectory of our children’s financial future by better preparing them.
There are five valuable money lessons we can teach our kids that can transform not only their financial future, but who they are as people.
- Teach them the value of WORK: One thing that can combat the entitlement mentality is having to work for something, and earning your own money. When our kids have to work, they learn responsibility and self-sufficiency. My grandkids’ granddad is always teasing and asking them if they have a job yet; the truth is that kids can start doing little jobs as early as preschool. Imagine their faces when they accomplish something, the sense of pride they feel, and their self-worth elevated to the next level. Work creates value.
- Teach them the significance of CASH: Our children are growing up in a digital world. It is possible to go all day, even days, and not use cash, and yet you are spending money. We are swiping, cash app-ing, Apple and Google paying – currency is never exchanged. Our kids need to know that the underlying source of the spending is cash. Teach them to use cash: to count money, to be able “make change,” and to experience what it feels like when you’re out of cash money. Cash is still King.
- Teach them the importance of SAVING: The one thing that will set our children apart from the rest, is to become really good savers. This is a habit that should be started early. You can make saving fun and enjoyable; make it a game, have challenges. Allow them to see their money growing; this positive reinforcement will inspire them to want to save more, and just like that you have a super-saver!
- Teach them to SET GOALS: You not only want them to set goals, but to set goals and achieve them. Let’s go back to saving, you can help them set a savings goal and purpose. Don’t make it too complicated, or too lengthy in time to achieve the goal. This can be fun as well. There can be a reward for achieving the goal. As they learn to set and achieve money goals, they can apply this practice to all areas of their lives. Being goal-oriented is a key factor to success.
- Teach them to be GENEROUS: One way to counter selfishness is to teach our children the act of generosity. I think they should see what poverty looks like; it will invoke compassion. They will learn to care about someone else besides themselves. Let them participate, even in small ways, in making someone else’s life better. Let giving become a part of the tapestry of their lives, in that they will know true wealth.
If we’re going to build generational wealth, it’s important to teach our children valuable lessons about money. It is important that they have the knowledge and skills to maintain and continue building a financial legacy. Enjoy this journey with your family.
Warmly,
Your sister Kim