This financial topic can mean different things to different people. Kids cost a lot of money…that’s one way to think about it. But that is not today’s focus.
Ask a young child which is worse: Not being able to pay the mortgage or not being able to get that ice cream cone after dinner? First lesson here is that everything in life is a matter of perspective so keep an open mind.
But the lesson today is teaching your children about financial responsibility. When I was young, I earned an allowance. I always told my Dad to let me have half and just put the other half in the bank for me to save. I definitely learned good money management from my parents. I’ve never not paid a bill on time and have never had credit card debt. If I ever wanted anything, I learned to work hard for it first, save, and then get it. There was never the thought of charging it to a credit card and worry about paying it off later.
There are many ways and lessons that are teachable to children of all ages. Start explaining to them the cost AND value of things. Teach them to save but even more importantly: to invest!
Here is a short article on the topic from the FDIC. Easy read.
