Some Money Habits, That children should learn
Financial education is an extremely important part of any individual’s life. Unfortunately this subject is not taught in any school in the world. For this reason the handling of money is mainly learned within the family. Children should learn to acquire a good MONEY HABIT by observing their parents first. Then parents must instill in their children the true value of money.
This is one step to help prevent children from squandering money, obviously they should not be greedy in adulthood either. Keep in mind that children follow the same behavior as their parents. Therefore parents should behave cautiously in front of their children, with money and also with other lifestyle habits.
Starting from the beginning
The best lesson you can give your children about money is that it comes from a job that is done. If your job does not correspond to your vocation, it does not matter. The important thing is that the money comes from a productive activity. You give something and you get something in returen.
From an early age, your kids will understand that money is also a consequence of work in some form or fashion. Thanks to that teaching they will create the best MONEY HABIT: to have a healthy financial life through work.
As they grow up they will discover that there are infinite sources of money besides work, although this is the most important. There is no better example than for them to see you go through the discipline of work and for them to have a manageable lifestyle because of it.
The true value of money
Kids do not handle money, so they only know it through their parents.
They must see that you make good use of the money. You pay the major expenses first (if that is your primary strategy), the rest of the money can be used for other supportive goals. This attitude alsocreates a very valuable MONEY HABIT: first you pay the essential expenses, because we must ensure a comfortable life. This also means paying yourself first as well. Budget for it!!!
This teaching emphasizes that money allows us to pay for everything we need to develop. This healthy attitude will prevent children from relating money only to toys, clothes, entertainment, etc. In this way you instill in your kids on of the major values of money.
A good standard of living
Money provides access to a good standard of living, but children must also learn healthy ways to access money.
They should know that a good education base – academic or technical – formal or informal – will allow them to get a secure a job/profession and therefore obtain a better income.
A healthy MONEY HABIT is to use all possible resources to generate a constant flow of income. This habit opens the mind to all possibilities of generating money. One must also encourage the multiple revenue streams as an example to show our children. They think and see tha more than one stream of income is what supports a comfortable lifestyle, and good standard of living.