Hearing the word “money” may cause you to feel a range of emotions from happy to sad to confusion. No matter how you feel about it, money is very important and an integral part of our daily lives therefore its imperative that we become well versed in how it works. If you are older, you can still learn about money, how it works and you can form a better relationship with it than you currently have. However, the best way to create real change is to give our kids the tools and wisdom that we lacked which will equip them to do better than we did. Teaching your kids about money and how it works will not only help prepare them for the world but give them the knowledge that they need to be financially literate and achieve financial freedom.
Teaching your kids about money will help them to be independent from you. One of the things that every parent hopes for is that their child will be financially independent when they’re adults. You don’t want to see your child struggle in any way, including financially. Teaching your child about money starting at an early age as well as throughout their lives will help you to achieve this goal. It’s believed by many that the number one way to make sure that you don’t worry about money is to make as much money as possible. While making more money will never hurt, if you never learn how to properly manage the money and your expenses, no matter how much money you make, you’ll probably find yourself in a situation where you’re spending as much money if not more than what you make. Teaching your kids about the importance of expenses will help ensure that whether they make a small amount of money or a large amount, they’re not spending all of it unnecessarily.
Teaching your kids about money will help them to feel confident about their future purchase decisions. If you get a knot in your stomach or feel nervous every time you have to make a big purchase or investment, you are not alone. That feeling of dread comes from fearing that you’re making a bad decision. If you think about it, that feeling is probably intensified when you’re buying something that you know nothing about and lessened the more you know about what you’re buying. That feeling may also be affected by how much you think you can or can’t afford it. If you don’t know whether or not you can afford something and you’re just crossing your fingers and hoping for the best, chances are you’re already setting yourself up for failure. Teaching your children about budgeting will help them to learn how to evaluate wants versus needs when they make purchases. It will take them from being the consumer that crosses their fingers and hopes for the best to being the person who makes an educated decision about a purchase and feels confident in what they ultimately choose to do.
Teaching your kids about money will set them up for financial success. You may want to create a legacy for your child. Maybe you plug money away into your savings accounts and 401k plan every year with the hope of passing some of it along to your children so that they don’t have to worry about money as much as you do. It’s amazing if you’re able to do this but if you don’t teach your kids about money, they may not fully appreciate the inheritance and treat it with as much respect as you do because it wasn’t their blood sweat and tears that grew it.
Teaching your kids about money will help them appreciate everything that you do to keep the family going financially. The best way to never have to ask your children if they think money grows on trees is to show them that it doesn’t rather than tell them that it doesn’t. The more your kids know about how hard it is to earn money and how easy it is to spend it, the better they’ll appreciate it. Teaching your kids about where money comes from and what it takes to get it will help them to look at the things that they want differently and prioritize better. They are still children so coming to fully understand this principle will take time but the sooner you start teaching it to them, the sooner they’ll get it.
If you know a lot about money, then pass as much of that knowledge onto your kids as possible! If you don’t know that much about money, you can still teach your child valuable lessons about it, even if teaching them what you know means teaching them about the mistakes that you’ve made and how not to make them as well. In the end, your kids are going to learn about money from someone, it’s a fact and like most lessons in life, who better to learn from than their parents.