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Do you want to raise financially competent kids?
In this life, money pretty much rules all. If you have money in your pockets and in your bank account(s), then you’re going to be in a much better place in life.
While some people are content with a small number in their account, they’ll be a lot happier if they know they have financial security and a solid way of protecting themselves.
Plenty of people on this planet are good with money because they’ve learned and they’ve experienced a thing or two. There are more people, however, who are pretty terrible with money and tend to lose it pretty quickly. There are a lot of money lessons to learn in this world. If you have kids and want them to have the best possible chance in life from a financial point of view, then you’re going to have to teach them a few things. Here’s what you can do.
Most kids aren’t overly interested in the complexities of finances. If you do have a child that is genuinely curious about how it all works, then you’re off to a good start as they’ll be keen to know more. When you teach them about money, you don’t need to go into great depth, however. Simply talking about the importance and the basics will be more than enough for them to pique a little more interest.
When they become of an age where they can start saving money, it’s wise to set them up with a small bank account. This will not only keep them a little safer but will also allow them to learn pretty early about what it means to have a number in one’s bank account. They’ll see the number and be keen to maintain it – or to make the number grow. Be sure to provide them with a safe, secure, and reliable bank.
You’re not going to live forever and, hopefully, you’ll be gone before they will. In this case, it’ll be a situation where they’ll take the money and any other inherited items off your hands. If you need to bring in a trust attorney due to awkward and unforeseen circumstances, then so be it. Make sure they’re going to be okay once your time comes – you don’t want to leave them in the dark.
One sure-fire way of losing money quickly is through not being able to control yourself when certain impulses flare-up. So many people throw their money away because they cannot sit still and cannot turn down a particular opportunity to receive short-term satisfaction. If you can teach your kids about patience and not being impulsive, then this will serve them well in terms of their financial future.
If we have goals in life, it makes us work harder and it makes us think critically. Never apply pressure with them, but just sort of let them know that they can achieve great things financially if they’re careful. Set goals with them and see how it makes them behave regarding how they work day-to-day and how they view the money in their pocket.
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