subject: Teaching Your Kids About Money, Finances, And Wealth Creation [print this page] What sort of topics do you discuss with your family over dinner? Politics? Or the latest gossip about famous celebrities? What about money, or the familys finances?
Most of us would probably shake our heads at the very idea of discussing money or wealth creation over dinner, but whether we like it or not, it IS something that we need to talk about with our family, especially our kids. If your kids dont start learning how to manage their money NOW, when are they supposed to do it? If you wait too long to start teaching them, they may never pick the lessons up and wind up in debt or worse- if they grow up to be financially irresponsible adults.
Here are ways to help you with your family endeavor to teach your kids all about money:
Make learning wealth creation fun. Talking about money need not always be a serious affair. There are plenty of free online games that teach children how to manage money. Do some research and pick the ones that are appropriate to their age. Make sure your parental filters are on.
If your older children have extensions of your credit cards, cancel them. Ask for the cards back and cancel those extensions. Give them a fixed allowance instead so they will learn to live within their means. Having a credit card only gives one a false sense of security. If they protest, gently explain to them that you cant afford the extra yearly fee and that they need to prove to you first that they are responsible with cash before allowing them to use credit cards.
Let them make mistakes while theyre young. You cant expect your children to perfectly abide by the rules. There will be days when they will have lapses in judgment when it comes to handling their money. Dont chastise them. Let it be a learning experience for them and continue guiding them.
Discuss the consequences of poor money management. Make them understand that people who are careless with money end up with many problems. They get saddled with debt, they can even lose their homes, and their children end up not going to college. Wrap up your examples with the question: Would you want to be like those people? That should cement the concept behind wealth creation habits in their minds and push them to take the practical route.
First, acknowledge that wealth is not a bad word. It is not about materialism. It is about stability having more than enough to pay the bills, enjoying a debt-free life, being able to give back to others and leaving a significant amount for the next generation. Wealth creation is a noble practice as long as it is achieved through honest means.
One of the most important things you need to remember while teaching your kids about money and wealth creation is that you should keep things FUN. Youre talking to kids who need to enjoy their youth while still learning lifes important lessons, so find ways to make your lessons more interesting and less like a boring math class.
