What can you do with your kids to make sure they think about how to form their own attitudes about money, saving, investing and growing wealth?
Many have said the different between the rich and the middle class is that the rich teach their children the use of money, saving and investment.
Give your kids an allowance, but make sure you also make them responsible for purchasing something important for your household within their allowance each week or month. Talk with them about how they spend their allowance and make regular savings a part of each “paycheck.”
Talk with your children about where they save money, how much they save (percentage) and what the purpose of the savings is as well. A lot of parents will want to say, “Hey, it’s not fair giving them an allowance and making them spend some of it on the households.” But it is fair. More than this, it is critical that you help them understand that they will have to purchase things with money in the long-term. You should also make them aware of your expectation of them: That they will save 20% of each paycheck to build their own emergency savings. That you expect them to save each “paycheck” (allowance). This builds their own expectation for themselves.
If we don’t teach our children to save, they won’t save. They won’t prepare for the bumps in life, and they will be catching up like us.
SAVE MORE THAN MONEY
In this country we don’t do enough to teach our children about money, managing money, saving regularly (and automatically), compound interest and steady investing for a long-term future. As a parent, we are always concerned that they get a good education and go to a good college so they can make a lot of money or have a valued career path. The truth is that we could do our children the biggest favor and one of the best things by sharing with them sound saving and investing principles.
You can join our free Facebook group (or have your children do it, too) by searching in the Facebook bar on your “wall” for “Live The Lifestyle Your Family Deserves.” Click on “become a fan.” It’s free and it ties our free blogs into that group.
If you want to give your children the same information we are giving ours, you can purchase the only thing we sell on any of our blogs or groups. It’s called “How To Survive Any Financial Crisis” and you can get it for only $4.95 at http://www.middleclassmoney.com.
Thank you for reading our blog and good luck!