When it comes to the desire for wealth, no race, background or gender is an exception. Everyone wants a cushy life and from the minute our kids discover the ‘magic’ of money, they are literally ‘sold’. They are eager to fill up their piggy bank and they nag non-stop for the latest toy or game. For some, this could lead to comparison, coveting or a highly ambitious child. If these tendencies aren’t managed they may have future, negative outcomes. Early, financial training is one of the best inheritances we can pass on to our kids. The term itself, financial training, may sound intimidating, but in reality the opportunity to learn key financial lessons are in front of us, every day. In 4 simple tips, here is how:
Save, save, save – Whenever your child is given cash, get her into the habit of saving, some if not all. Remind them often that credit doesn’t equal cash; overspending can result in having to borrow what you don’t have.
Grow, grow, grow – Conversations about investments, stocks and growth needn’t be so complex. Using the analogy of plant growth, talk to them about how funds can grow, about how a plant grows from a little seed with some water, dirt, sun, and of course, time
Give, give, give – Encourage them to give, from old toys to a tasty treat. This shows them that they shouldn’t hold on so tightly to money and material things, because there are much more important things to value in life.
Decades ago and still today, in some cultures, having kids has been seen as sign of financial security for parents. Other less traditional cultures question this intention but what every parent has in common, regardless of culture, is the desire to see their kids become comfortable and happy adults; and let’s face it, as Westerners, comfortable and happy has a connection, even if indirect or minimal to financial wealth. How did you last conversation about money go with your child? Are we ‘on track’?
Photo credit 3KidsAndUS