Teach Your Kids About Money

Have you ever looked back at life and thought to yourself, “Wow, if I had only known then what I know now…”? I have, and especially regarding handling money.

I knew when I finally had children, I wanted to make sure I set them up for life and teach them everything I wish I had known when I was growing up. Now that I have a young daughter, I can see that there are things I can do for her from a very young age that will set her up for a great financial future.

First of all, giving her positive affirmations about money and instilling in her the belief that:

  • Money comes easy and effortlessly.
  • We can always afford it. The question is ‘Do we choose to buy it?’
  • Financial problems do not have to be a part of her future.

All of these will be a great start!

Second, I plan to give her a solid foundation for saving and spending my using a tactic I learned from my father when I was little. My dad would give us a book where we were required to track our allowance that we received as a sort of “deposit” to our own personal bank. We were also required to keep an accounting of every penny we spent, and what we spent it on, in our little personal banking books. And this lesson wasn’t any joke either – he required that if we couldn’t account for every single penny in our banking books, we had to pay a fine to him in an amount that was double what was missing. This was my dad’s version of “bank penalty fees”. I can tell you that we quickly learned how to track our money, how to avoid paying those penalties, and how to spend wisely. It was a lesson that I know most of my own friends didn’t learn until they were grown. We were very lucky to be introduced to those concepts at such a young age.

teach-kids-money

Third, I’m going to foster her entrepreneurial side early in life. I have heard of elementary school age children starting businesses, making money running them, and in some cases keeping those businesses thriving and profitable for many many years. That teaches a child that they always have options for ways to make money and don’t necessarily have to rely on holding a job as a sole source of income. It also teaches them the fundamentals of business that will create a strong solid foundation without debt when they do decide on a career in their adult lives.

Fourth, when my child does produce income I am going to encourage her to save 10% for wealth building. Can you imagine if you had put 10% of all of the money you made since you were 15 years old into a wealth building account, how much money you would have right now?

Fifth, when my child does produce income I am going to encourage her to donate 10% in the form of tithing to her favorite charities. Tithing increases self-esteem, increases wealth and makes a difference; 3 lessons in one.

Teaching kids the fundamentals of money, saving, and spending don’t have to be an adult-type conversation.

Start with things they can easily understand, make sure there’s a lesson to be learned, and come up with games and rewards that can be used to make it fun for them to learn. Also, always remember it starts with you – if you know about your money and finances, it will be easy for you to confidently teach your kids. If you think there’s more you need to learn (and we can all ALWAYS learn more about building wealth), check out the website for information regarding our classes for and education on building wealth.

Renee Cermak
“World peace rocks and so does being rich!” Mike Dooley

Related Posts

Leave a Comment

Get Instant Access to Our 3 Free

Wealth-Building Tools

Subscribe now and we'll send you the same wealth-building tools that Renee & Fred have developed to create their own financial freedom.

Start using these tools today!

Success! 

Be sure to add renee@beterbestnetwork.com to your list of trusted senders, so you'll never miss an important email that could change your financial future.