Marion Syversen was here for this week’s Finance Is Fun, talking about the topic of kids and money.
Kids are a precious blessing and a awesome responsibility. We don’t have to be an expert at the things we teach to pass great information on to this next generation.
For instance, not everyone is a trained chef and yet we teach our kids to cook. In the same way, you don’t have to be an expert at money to teach your kids good lessons about finance.
This month, I’m going to do several segments on teaching kids about money, let’s start with some reminders:
1.) If you use a credit card, and even a debit card, for most of your transactions you may be missing the FEELING of money. Handling cash and parting with it has a feeling, a feeling of loss. A feeling like a twinge of pain. That’s an important feeling to stay connected to. That feeling helps you part more wisely with your money. It is a feeling you want to pass on to your children
2.) Money doesn’t grow on trees. There is no painless or easy way to get it. Getting money is generally in exchange for effort. YOU know this. Help you children understand that you work hard for the money that you have. When you have to work 3 days just to earn the money to pay for one item, it makes you think hard about the item’s value compared to all your effort. Teach your children this same principle.
3.) When things go wrong it is a comfort to know you have a savings account to buffer some of the loss or difficulties that happen in life. Setting SOMETHING aside every time you get paid will reap giant benefits when times are uncertain. Help your children understand this valuable discipline.
4.) It is always a blessing to give rather than to receive. No matter how difficult your circumstances, there are always people worse off than you and your charity changes things for others, while it lifts your spirit. Teach your children the joy of giving.
These things are fundamental truths about money that we know as adults. But your kids have never learned them. And they will never understand them if you don’t teach them these important truths.