Our ideas and beliefs about money are often derived from our family members. How they manage their finances, ways they save money, and where they choose to spend money can have lasting impressions. Who taught you about money? Did a parent set up a savings account for you? Were you paid for chores or encouraged to work at a young age?
Teaching children about diligently saving can set up offspring for a lifetime of success. The same goes for spending, we often forget to instruct our kids on responsible spending – enjoying what we earn and putting it towards something we desire. My six year old is learning this lesson the hard way. Instead of spending his allowance each week on frivolous instant gratification indulgences, we have set up a system to encourage him to save his weekly allotment toward a larger goal, in this case, the Lego Millennium Falcon. It’s not my first choice for him, but it’s something he wants and will take him a long period of time to save for.
The Humble Dollar discusses the challenges of teaching our youth about finances and provides a few creative ways to learn about money. Don’t get thwarted by the method of teaching, but rather, just start a conversation about the cost of items and the various methods to pay for them. The same goes for investing. We hear about countless readers who give the Coffeehouse Investor book to young grads just starting out in the workforce.
You may never know the lasting impact your own financial teachings and habits have on others. Our little ones are always watching, listening, and learning. Strive to be a good financial steward.
Guest writer: Julie Klingler