Dear fellow Concerned Parent,
I am constantly asked why is it so important to teach our kids about money?
Shouldn’t we just let our kids be ‘kids‘ and let them worry about money after they grow up?
These are very good questions and I completely understand why concerned parents ask this.
We assume as parents that our schools will teach our children everything they will need to know to be able to become independent young adults but we forget that ‘teaching children about money’ is not in the curriculum.
Now let me give you statistics that may shock you:
1. Did you know that the number one reason that young couples divorce today is because of money stress?
2. Did you know that the majority of bankruptcies today are applied for by adults 25 years and younger?
Do you want your children to end up as one of these statistics?
No, I didn’t think so, and neither do I.
That is why I now am actively teaching my children about money.
So where do you begin?
I simply suggest you begin by encouraging your child to come up with a creative way to earn their own money, so they will feel the pride they deserve from their own efforts.
Then I suggest you encourage your child to split their money into four categories (or piggy banks):
1. Savings (for that rainy day emergency)
2. Investing (you can start them off with simple small stock investments in quality stocks)
3. Charity (teach your child now while they are young to give away some of their money to help others so they won’t turn into Scrooge! AND they will get an incredible sense of responsibility toward humankind and nature, and that will only strengthen their characters and help them in their day to day struggles in life)
4. Spend the rest, FAST! (let them feel the rewards of their hard earned cash quickly so they stay excited to continue along this entrepreneurial path.)
I hope this has been helpful and look forward to hearing your comments or other suggestions.
Cheers….Amanda van der Gulik…..Excited Life Enthusiast!
For ’50 FREE Money Making Ideas for Kids’ click here.
Help your kid find some easy ways for kids to make money.