I think one key is to keep kids knowledgeable but not obsessed with money—to give them tools to manage their money but not be over conscious about it. I teach my kids that money is the means to an end, not the end. Money is the tool to achieve the goal, not the goal.
In the first part of finance, we discussed how you’ll be writing down your spending on that big pad of accountant ledger paper. Remember, don’t be hiding that ledger paper away! Leave it out in the kitchen, where everyone sees it every single day. Let your kids see where the money goes. Most children, rich or poor, have absolutely no concept of what it costs to live. They don’t know how large a rent or mortgage payment can be, or even the cost of putting groceries on the table. They can’t yet comprehend the effort you put into bringing home the bacon, or even what a pound of bacon might cost. Their knowledge of the cost of clothing consists mainly of that ‘‘phat’’ $100 pair of shoes they covet at the mall.
No parental lecture has the power inherent in parental example. If your kids regularly see bounced checks coming back from the bank, they’ll have a hard time taking anything you say seriously. If you are financially responsible, your kids will look to you as a role model. And if you are less than financially responsible, they will only be too delighted to follow your example! Let’s provide great examples for our kids, because one great example is worth a thousand nagging words.
In the first part of finance, we discussed how you’ll be writing down your spending on that big pad of accountant ledger paper. Remember, don’t be hiding that ledger paper away! Leave it out in the kitchen, where everyone sees it every single day. Let your kids see where the money goes. Most children, rich or poor, have absolutely no concept of what it costs to live. They don’t know how large a rent or mortgage payment can be, or even the cost of putting groceries on the table. They can’t yet comprehend the effort you put into bringing home the bacon, or even what a pound of bacon might cost. Their knowledge of the cost of clothing consists mainly of that ‘‘phat’’ $100 pair of shoes they covet at the mall.
No parental lecture has the power inherent in parental example. If your kids regularly see bounced checks coming back from the bank, they’ll have a hard time taking anything you say seriously. If you are financially responsible, your kids will look to you as a role model. And if you are less than financially responsible, they will only be too delighted to follow your example! Let’s provide great examples for our kids, because one great example is worth a thousand nagging words.
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