This week, I want to talk to you about bad habits. We’ve all got them, and more importantly, we
are all-too-often guilty of giving them to our kids.
I’m not talking about smoking, or eating too many Cheeto’s,
I’m talking about money.
How many times do we talk about money with our kids? Or, more importantly, when we do, how many
times is that talk negative?
We’ve all heard some of the sayings before, “Money doesn’t
grow on trees!” or “Do you think we’re made of money?” or my favorite, “You’ve
got to work hard to get ahead.”
What’s amazing to me is that we repeat these so often, and
wonder why our kids struggle to spend money responsibly, when we’ve never
taught them how to do it!
Seriously, have you ever spent time with your child
explaining a budget? Or how to
comparison shop for a better price?
The truth is, we own the responsibility to ourselves and our
kids to make sure they are not only aware of the value of money, but also, of
how to make it (and save it) effectively.
How can you do that?
Well, money, in the end, is really only an allegory for
responsibility, and from a strictly developmental point of view, the brains of
kids – up to nearly age 25 – aren’t fully developed. In other words, they can’t “think” like we
can as grownups.
Does that mean they can’t learn? Not at all.
In fact, the very nature of money, spending, and saving means kids can
learn to use money responsibly – and that means teaching and sharing. Let me give you some examples…
· Do your
kids understand the basis for taxes – not just income, but also things like
sales tax, ad valorem, and so on? Having
those types of conversations can begin early in a child’s life and can help
them to understand the role that government plays in a society and how those
tax monies are used (for good or bad…)
· How
about income? It might be awkward to
share big checks or bonuses with your kids, and it might not even be a great
idea, but teaching them that people who exceed the expectations of clients and
customers can make more money can help inspire your kids to try to achieve
more, too.
· What
about offering them the opportunity to earn money? Earlier this month, for example, I shared the
idea of showing your kids what you actually do in your business, but start when
they’re young, too. Ask them to think
about things and tasks that need to be done around the home, and ask them what
they would accept as a payment for doing those each week. Even a small child can do things like clear
the table, or feed pets and care for them.
Why not give them the chance to do so?
It’s FAR better than an allowance, and creates a sense of
accomplishment.
· Help
them to establish a family budget. It
might not need to have “all” the facts about your income, but you could set the
example of “We have $1,000 each month to buy our groceries and gas, so you’ll
help me to plan out meals, shop for our food, and find the best gas prices in
town when we need to fill up.”
One thing is for certain, though, you owe it to your kids to
have these types of conversations. The
more they know and understand about money, the better off they’ll be – and the
better prepared they’ll be, too. In the
end, you’re helping to better educate your kids to feel more empowered about
money.
I’m always happy to help, so don’t hesitate to reach out.
All the best-
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