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10 Things to Teach Your Child About Money

Updated: Mar 12



We need money and use money every day, but it seems nobody every receives an adequate education about how to earn, save, give, spend, and invest money. Most people regret not having learnt more about money earlier in their lives. The majority of adults wish they were more knowledgeable about personal finances, and only 57 percent of Americans are considered financially literate. When is the right time to talk to your child about money? Now and always.


1. The First Rule. Spend less than you make. This simple rule will save you so much stress and suffering. Live moderately. Control your expenses. Live below your means, all wise men and women do.


2. Become a Saver. Save 10% of everything you ever earn. If you do you will be financially independent one day, and that is a beautiful thing. Start today. Save 10% of every dollar that comes your way from chores, birthday gifts, etc. Nobody ever regretted developing the habit of saving.


3. Buying. Before you buy anything, reflect on how hard you had to work to earn the money you are about to spend. Don’t confuse wants with needs. The person who needs the least has the most.


4. Invest. Invest first in yourself. The number one way wealthy people invested in themselves long before they were wealthy is by reading books. 86% of the wealthy love reading versus 26% of the poor. If you want to be financially independent someday become a reader. Commit yourself to learning more about money, personal finances, and the wisdom of wealth every year for the rest of your life. Learn how to put your money to work, so that your savings work for you even when you are sleeping.


5. Debt is a form of slavery. It is one of the major forms of stress in many people’s lives. Debt doesn’t solve problems, it creates them. You cannot borrow your way to happiness, wealth, or success.


6. Compound Interest. Learn about the power of compound interest. If you save $5 a day every day of your life to the age of 65 and invest it at a compounding rate of 9%, you will have over seven million dollars.


7. The Best Things. The best things in life really are free. It’s true. Never lose sight of it. Here are a handful of examples: true love, Sundays, laughter, friendship, work you love doing, nature, hugs and kisses, waking up to a new day, feeling healthy, rain, watching the sunset.


8. Overspending. Emotionally healthy people consume less than emotionally insecure and unhealthy people. Never buy anything to make yourself feel good. Overspending is a disease. If you get sick with the disease, get help immediately. Don’t wait until it takes over your life, destroys your relationships, and make you physically sick. If you are not free to say no, you are not free to say yes.


9. Future Income. Don’t just work for money, make your money work for you. Save and invest to ensure that you have income in the future. Contribute to your retirement plan as soon as you start working, buy a rental property, invest in a business. Ensure a future income for yourself and your family.


10. Generosity. Decide to be a generous person. No matter how little you have, always look for ways to be generous with others. The joy of giving elevates the soul.


Get your child three jars and help them make labels: SAVE, SPEND, GIVE. Encourage him/her to put ten percent of any money they receive in the save jar, ten percent in the give jar, and eighty percent in the spend jar. Teach them to enjoy earning, saving, giving, and spending.


Teaching your child about money is a gift that will pay dividends every day for the rest of their lives. It doesn’t matter how much money a person makes, if he/she doesn’t not know how to manage it wisely he/she will never have enough. Make the wisdom of money part of your life and your child’s life.



Other Resources on this topic:


1. The Millionaire Next Door


2. The Richest Man in Babylon


3. Think and Grow Rich



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