As a parent and grandparent, I strive to be a positive influence in my children and grandchildren’s lives. The financial example I set, good or bad, impacts them. I am humbled and gratified when my adult children or grandchildren approach me to ask for my opinion, wisdom, help or advice. What impact is your example having on those around you?
As a parent and grandparent, I strive to be a positive influence in my children and grandchildren’s lives. The financial example I set, good or bad, impacts them. I am humbled and gratified when my adult children or grandchildren approach me to ask for my opinion, wisdom, help or advice. What impact is your example having on those around you?
Here are five things we should teach our children, grandchildren or other young adults in our lives about money.
1. MONEY HAS A COST
For most people, money must be earned; it isn’t free; to get money, we must give something in exchange. When you work, you trade hours of your life in exchange for the income you receive. Teach children to embrace a work ethic and see value in work, no matter what the job.
2. LIVE WITHIN YOUR MEANS
Money doesn’t grow on trees. Just because we have a credit or debit card doesn’t mean we have money to spend. If you cannot afford it, do not buy it. Do not be ashamed to tell your children that something is not in your budget or that you are saving for it. My husband and I use the 80-10-10 rule; 80% of our earnings are used to pay our bills and provide for extra things we enjoy, 10% is set aside for savings, which includes retirement planning, and the final 10% goes to charity.
3. WANT VS. NEED
Teach children the difference. They need food, clothing, shelter and love; they want toys or fashion items. They want all the candy on the candy aisle; a wise parent does not buy it for them. If your child wants something outside of your budget, encourage him or her to earn money and save up for it. When the child achieves this goal, there is a greater chance he or she will attach value to the item and take better care of it.
4. GENEROSITY
Be an example of generosity. Generosity can mean giving our money to help others, but it also can mean giving of ourselves to help others. Find an organization that aligns with your values and schedule time for your family to volunteer. Afterward, talk with your children about what they saw and felt and why it is important to give back.
5. MONEY IS NOT THE CURE FOR LIFE’S PROBLEMS
Having more money can make life more comfortable, but it cannot bring fulfillment, solve all of life’s problems or correct bad character. Teach your children that people, not money, matter most; their lives and yours will be richer for it.
I encourage you to choose to be a positive example for those around you. The rewards are not monetary, but they are life changing for you and those looking up to you.