Have you taught your children about money, value of money and hard work?
What is the most important thing to teach your children about money?
Are there some things about money, saving, investing and taking risks you wish your younger self knew?
Research has it that not less than 70% of rich families lose their wealth by the second generation and a whooping 90% by the third according to Williams group wealth consultancy.
U.S. Trust surveyed people who have more than 3 million dollars in investable assets to find out how they are preparing the next generation for handling wealth. Not less than 78% were pessimistic about their children financial literacy and responsibility to manage their wealth when the time is due.
These figures are really alarming. It means that rich or not, it is our responsibility as parents to begin to expose and teach our children about money from a young age. When children learn to manage money at a young age, they are more likely to be responsible with their money as adults.
“If he is capable, he can make his own money. If he is not, then he will just be wasting my money.” – Jackie Chan
It’s important to teach children at a young age that most wealth is not a result of luck – most people need to work hard and make smart decisions to “get rich and stay rich” and of course smart decisions are products of understanding personal finance, putting wants and needs in order of priority and ultimately saving and investing.
Here are 7 Things to Teach Them:
1. Money doesn’t grow on trees. You have to make money to be able to spend money. Spending money can only happen after you have earned it.
2. Get them involved in everyday financial activities – going to the bank, going shopping, getting change, finding best deals, paying bills, etc
3. Teach them about saving – let them learn to save towards small and big goals.
4. Teach them about delayed gratification – this helps them understand the basic about saving and investing to get more later than spending everything now.
5. Let them learn about making wise choices when spending money because funds are limited. Start them on an allowance. Let them spend it how they want and allow them to see that spending it immediately can prevent them from saving up for bigger things.
6. Teach them responsibility – As they get older, let them start paying for their own non essential items likes games or toys.
7. Practicalise earning money – as they become teenagers let them work during the holidays to earn money. Let them understand what it takes to earn money. You don’t value money until you are the one earning it.
Lastly, set a good example as a parent. You can also bring money lessons to life with fun games and activities. Here is where 9ijakids can help. Let your children play, learn and have fun with our financial literacy games – Kiddipreneur 101 and Money Matters. Click link www.9ijakids.com to start learning.