9 Lessons: Your Kids Are Watching How You Handle Money
What are you teaching them?
I observed many things around me at a relatively young age; I had a heightened sense of awareness, which allowed me to notice what was and what wasn't working with people's finances.
A few lessons I learned early on from watching my parents and other adults:
Lesson 1: Live within your means.
Lesson 2: Avoid debt and unnecessary credit cards.
Lesson 3: Always maintain multiple income sources.
Lesson 4: Consistently educate yourself about money.
Lesson 5: Avoid purchases on stuff you don't want, need, or will use.
Lesson 6: Ensure you and your partner are on the same page about finances.
Lesson 7: Avoid student loans; pay your way through school and apply for grants and scholarships.
Lesson 8: Adopt minimalism and avoid materialistic pursuits that lead to nowhere. Less is more. Learn to live with less.
Lesson 9: Make your kids work for their money. Don’t spoil or provide everything for them, or you risk raising financially codependent and lazy adults.
Lesson 3: My Parents Always Kept Multiple Income Streams
It dawned on me that throughout my childhood, my parents always managed multiple income sources, which is how they provided my siblings and me with significant opportunities before leaving the nest.
This invaluable habit taught me the value of not relying on one income source.
One income source is better than zero income sources, but multiple income sources are always better.
Some people get lucky and are able to survive throughout their lives on one income source. But most people will, at some point, deal with a job loss, an economic recession or pandemic, or an unexpected financial hardship that takes its toll on one income source.
My parents not only had their primary jobs but also successfully ran businesses and pursued other income-yielding ventures, which funded our educational, travel, extracurricular activities, and athletic pursuits; the additional income also helped them pay down debts and save.
I never had one income source, and I attribute this lucky habit and lifestyle to my parents, who modeled the benefits of maintaining diverse income options.
Lesson 4: My Parents Facilitated Financial Education
No one in my family was a financial wizard perse, but we all had the opportunity to learn and educate ourselves about money because my parents had us read personal finance books at the dinner table, introduced us to finance and business gurus, and even brought in a financial advisor to help us set up our ROTH IRAs.
You don't have to know sh*t about money to teach your kids about money. Whether you're skilled or inept with money, your kids will learn how to manage their money by watching how you handle your dollars.
If you're financially ignorant — like many, it's okay to stay humble and learn about money with your kids so you can model healthier financial behaviors to them, and they can practice these habits early on.
One of my parents' greatest gifts to me was financial education, which I have carried with me throughout life. Of course, you can't force your kids to be interested in learning about personal finance, but you can guide them and expose them to proper knowledge to help them succeed financially.
Provide A Roadmap And Let Your Kids Decide Their Journey
It's up to your children to decide their financial paths.
I could've taken the financial education I learned during childhood for granted. I could've easily stopped learning about finance at the dinner table but continued reading personal finance books on my own time and dime.
My parents increased my financial options by facilitating education.
As parents, all you need to do is consistently introduce your kids to knowledge. Take it a step further by modeling healthy financial habits. They'll have to decide if they want to implement the knowledge, but at least they'll always know there is a better way to do things.
But even if you model unhealthy financial habits to your kids, they can observe the outcomes of those financial habits and decide for themselves if they want those same outcomes or different ones from alternate paths.
Everyone is responsible for their financial situation.
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Thank you for reading. Cheers to you. | destinyh.com
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
We take so much from our parents. If I ever have kids, teaching them to be good with money will be a priority.