Creating wealth or a lifestyle that you want isn’t one of the simplest things to do. It takes a lot of hard work and most importantly smart money decisions. And, the sooner your little ones know the truth about money and wealth the better. So, if you haven’t been doing it, here are critical money lessons you should start teaching your kids right now.
You Don’t Have to Always Buy Something You Want
Teach your kids to master the art of delayed gratification. Most financial experts have always expressed their support to waiting until you can afford an item you want to buy it. At the same time, you should let your children know that you don’t have to buy something just because you have the money. That way, they’ll learn how to avoid impulse buying and by extension become better at managing their money as they usher into adulthood.
Save a Portion of your Earnings
As cliché as it sounds, most grownups are yet to develop a saving culture. The result is that everything seems to be an emergency to them, including rent. Buy your kid three jars. Label them “saving,” and “spending”. Every time he/she receives money either for doing household chores or from a birthday, ask them to put some in each of the jars.
Money in the spending jar should go towards buying small purchases such as sticker or candy. The saving jar will be for expensive items such as big toys and so forth. The idea is to ensure that your child learns that it is wise to put some money aside for a particular goal or for a rainy day.
Money is Finite, Spend it Wisely
Your child should know that no matter how much money you have, you have to spend it well. Teach him/her the importance of budgeting. Tell him/her that every coin counts. As your kid grows older, involves him/her in some financial decisions. The aim is to make your teenage gain skills in decision-making. One of the best ways to do so is to take them with you to the shopping mall and explain why you’re buying particular items of specific brands.
The Bottom Line
Your kids are likely to become a successful individual if teach them how to deal with money at a tender age. The last thing that you want is to raise a rouge child who can’t put their act together when the world needs them to.