What Are We Teaching Our Kids About Finance?
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
Children learn by watching what you do, are you sending them the right message about finance?
I earned pocket money growing up for completing jobs that I was given, I was allowed to spend my money on whatever I wanted and even though I was encouraged to save some I did not have the will power to do it so never did and I was never made to. My sister on the other hand, would spend a little and save the rest for other things. I learned the value of working for money in this exercise but I did not learn how to save or use my willpower. My education in finance was not, in my opinion, made a priority therefore it did not become a priority at all until later in life when my circumstances forced me to look at the subject of finance with a different mindset.
All my adult life, until I was in my late 30s, I was terrible with finance, I did not save at all, I lived beyond my means and did not understand what money was really about. I failed also to teach my eldest son the value of good finance management and how money should be used as a tool and not be something to be afraid of. Interestingly enough, my sister is pretty good with money and has a successful business. With my second son though, I was in a better position, I had learned where I had gone wrong and the necessary knowledge to make myself strong in the finance arena so I was able to show him what money can do if you use it the proper way. The book called The Richest Man In Babylon by George S Clason is a wonderful book to give young adults to help them understand finance.
Eventually we will show Jesse what is really possible with investing too. Building up working capital, finding a suitable vehicle to invest in and reaping the rewards (and sometimes the failures) is all part of growing up and learning to make the most out of this world. Money is a tool to be used for the sole purpose of making your life and the lives of those you love and admire around you rich and rewarding. It is not a sin to be rich, in fact, it is a sin not to be rich.
“Your playing small does not serve the world, who are you not to be great?” Nelson Mandela
Striving to become the best you can be is a great way to lead by example for your children and all around you whom you influence. You cannot help the poor if you are one of them! If you listen to the advice of anyone who is not living the life you dream of then you will be doomed to live the life they live. To have a great life you must be happy in your home, car, country, be fed well, be healthy, have the things that you would like to make your life rich and rewarding.
It is up to us to make sure our children get the proper education about finance because money is one of the main factors in life that help to move us forward, without it we are literally stuck, so it makes sense to teach our children how to use it well so they can really focus on what they want in life instead of just focusing on making enough money to get by and leading a life of lack. Our schools do not give our children the necessary skills and tools in finance that they need to become rich so it is up to us to lead by example. Actions speak louder than words. By becoming masters of ourselves we are empowering all others around us to do the same.
Robert Kiyosakis, The Cashflow Quadrant, is a great book to begin to learn about finance with. Robert and his wife Kim are masters at this game of making money therefore they make great teachers but you will also have to put into practice what you learn or nothing will ever change! Using money is a skill and like all skills, must be honed over time.
Our children are our future and if we want their future to look better than ours then we must start by looking in the mirror….become a master of finance yourself and then make sure your children do the same, surround yourself with like minded people who lift you up and support your skills, create a legacy that can be emulated well after you have gone….this is a life to be proud of!