There are lots of things about finance that are confusing
and hard to understand. However, there are also a lot of plain and simple
“money truths.” These are the kinds of lessons you should be teaching your
little ones from an early age, and they are also ones that you should never
forget. If you need a refresher course, read on to learn about some
simple-but-true financial basics.
Work = Money
If you suddenly stopped going to work and/or doing the
things you were asked to do, would your boss keep paying you? The answer is a
big, fat no. Your children need to realize that money isn’t just given freely;
it is the result of much hard work and effort. You can easily teach this simple
truth by giving your little one responsibilities and absolutely refusing to pay
up unless he honors them. Remember this rule for yourself the next time you
feel like calling in to work or taking a “sick day.”
Be Careful of Credit Cards
Young teens, such as those just starting out on their own,
are some of the most common victims of evil credit card companies. Okay, to be
fair, credit card companies aren’t evil, but they do have a motive, and that
motive is to get you in debt and keep you there. They don’t make money unless
they can get you to pay interest on your purchases, and they get you to pay
interest by hoping that you’ll overspend and only be able to make your minimum
payment each month. Teach your teen about how credit card companies truly work
and about responsible credit card usage. Then, remind yourself of these rules since
credit cards are a tempting vice for many.
Want Vs. Need
Your child needs a bed to sleep in, food to eat, clothes,
and a place to live. What your child wants, however, may be lots of new toys, a
pony, and other extravagant purchases. The next time your little one (or big
one) asks for something expensive or extravagant, take it as the perfect
opportunity to explain the difference between wants and needs. Remember, there
are very few things that people need in life and lots of things they want. If you
can teach your child and yourself to focus mainly on the needs and ignore the
wants, you’ll live a much more financially free life, guaranteed.
These financial lessons may be simple, but if you remember
them always, they’ll carry you far in life. The same goes for your child. By
instilling financial sensibility in your little one early on, you can create a
brighter financial future for both of you.
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