It is no secret that money – how much you have, how you manage it and how you spend it – severely impacts your life’s comfort and the opportunities afforded to you. Whoever said money makes the world go round, knew exactly what they were talking about.
This is why educating your children about money and financial wellness is paramount to their development and the preservation of generational wealth. After all, the Bible did tell us “Train up a child in the way he should go, and even when he is old he will not depart from it”; this I believe certainly involves money management. How else will the next generation be able to manage their money, yet alone the economy?
Money Habits For Parents to Instil in Children
But enough of my preaching, here are 10 money habits from financial expert, Shamar Clarke, that you can start instilling in your child today:
- Teach them to track their money; know every dollar that comes in and how every dollar was spent.
- Focus on buying things that are helping you earn money, rather than things that will call for you to spend money on them consistently.
- Be careful who you take financial advice from, especially if they are not in a position financially that you aspire to be.
- Spend what is left after investing and not the other way around.
- Don’t try to keep up with the Joneses whether they live next door or they are on social media.
- Diversify your investment portfolio; invest in different asset classes to avoid putting all your eggs in one basket.
- Live on less than you earn.
- Always verify opportunities before you invest; avoid investments that sound too good to be true and promise exorbitant returns quickly.
- Invest in real estate.
- Maximize your earnings by having multiple streams of income.
Practice becomes perfect. Involving your children in financial practices from early can tremendously help with their money management skills in future. I’m going to hit you with another cliche quote and it is that “children live what they learn”, so let them see you implementing these habits until they are habits of their own.
Let’s prepare our children for the future today. Teach them money management and ensure they are financially literate and ready to tackle the world.