Below are the 10 money principles that your kids should learn:
- Financial freedom is your choice! There's no age too early for financial literacy. We should also teach our kids this fact that they can be financially free if they choose to.
- Creating financial freedom is a matter of developing right habits. Develop and establish your kids' financial habits early on in life. As parents, we should also model how to have sound financial habits for our kids to imitate.
- Pay yourself first. Teach your kids how to invest and have their money work for them.
- It's better to tell your money where to go than ask where it went. Teach them how to budget their money wisely.
- Assets feed you; liabilities eat you. Kids should know what's the difference between the two and they should also see in us parents that we have more assets than liabilities.
- Don't put all your financial eggs into one basket. The three pillars of wealth are stocks, real estate, and business. We are blessed to currently have all our money invested in these and I know my son realizes the advantage of diversifying our investments.
- Save early and save often. Have your kids appreciate the magic of compound growth brought about by compound interest. Help your kids invest their money in mutual funds!
- It's not how much money you make that's important. It's about learning to better manage and invest your money that you already have that matters most.
- Money is a tool to reach your dreams. Money not only helps you become secure and financially free but it also helps you to help others.
- Make money grow by putting it to work for you. Passive income is the bomb! How to achieve this? Invest in sound and legal investments and watch it grow overtime.
Thanks to MoneyMax.ph for this infographic!
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I love advice # 4. That is so true, even adults can be heard asking themselves the question - "Where did my money go?" If kids would learn this by heart, they would learn to refrain from useless spending.
ReplyDeleteThis is great advice for parents. We focused on teach the value of money early on when our daughter was young.
ReplyDeleteIt's a shame they don't teach some of this in school. It would help kids a lot, since this is a ton of information to learn. I think parents can absolutely show their kids the right and wrong ways to handle money.
ReplyDeleteThese are great principles for everyone to keep in mind. Starting good money habits early is so helpful.
ReplyDeleteIt's definitely important to teach them about money, it will help them once they're old enough and earning on their own. Learning how to save is essential, it's good to start them early.
ReplyDeleteThis is all great advice! I have started trying to explain all of this to my 3 year old and I think she is starting to get it, especially when we go to the store and she wants something *like a stuffed animal that she really doesn't NEED) and I explain to her that she has to spend her money on it if she really wants it and it makes her think twice.
ReplyDeletethis is great advice! I think it is also important for parents to teach these things by example.
ReplyDeleteI like your points, I am planning to teach my son these things even if he is so young.
ReplyDeleteI agree with the soonest possible time to teach kids about financial control. But as much as I appreciate these tips practicality-wise, I don't see number 10 working for kids.
ReplyDeleteI like the last part, make it grow by let it working for you. Money can be a great master and a great slave. It is nice to teach the young ones about it.
ReplyDeleteThese things should be taught to kids. They should learn stuff like this at very young age so they will know how to save money.
ReplyDeleteI agree with you, financial freedom depends on how you develop a habit. I like a habit of saving.
ReplyDeleteI work with youth and am also a parent. It is our job to make sure our children are fully prepared to successful adults. Financial understanding is one of the most important tools we can give them. Thanks for sharing.
ReplyDeleteI think these are all wonderful tips. Having kids know how to deal with money is great. My girls always save theirs and put it in the bank. I love to teach them about saving.
ReplyDeleteThis is so important. I tried teaching this to my daughter after she got a job last summer.
ReplyDeleteLove em all Thanks for sharing these principles
ReplyDeleteI very much agree that we must teach our kids about financial handling as well as that becomes a major part of the life. These are some great tips to make sure they are aware about what they should do. A great resource for parents indeed.
ReplyDeleteI love number 4! I am always asking myself as an adult where my money went. I would much rather be saying where it was going.
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