I learned a lot from my parents about money. Or rather, I should say I learned about how not to handle money.
- I learned that if you need to hide purchases, you probably should not have bought them.
- I learned that you can’t hope more money will show up when needed without taking specific steps.
- I learned that eventually bad money habits will catch up to you.
My plan is to not pass these financial disorders on to my own kids.
#1 Parents should teach their children how to bargain shop.
I can’t tell you how many young women have asked me how I manage to spend less on groceries and clothing and yet still have no trouble putting food on the table and clothes on my kids’ backs.
They don’t understand what it means to shop around for the best price before making a purchase. They don’t know how to be frugal.
#2 Parents should teach their kids how to prioritize.
Girls need to be able to categorize the items they want.
Instead of quickly buying something that seems like a good deal, it’s always better to wait and see if it’s something that you really need to buy now or if you should put the purchase aside for later.
This helps to deter impulse purchases and saves money in the long run.
#3 Parents should teach their children how to not be too generous.
Women have a habit of taking care of others. We do this even to our own detriment at times.
This does not mean that you should become stingy and not give away to charities. It does mean, however, that you should not enable family and friends who would just as soon blow all of their money and then ask for some of yours.
#4 Parents should teach their kids how to make a budget.
A monthly or weekly budget should be written down on paper to help you spend your money properly when you get paid.
Without a budget, you may spend uncontrollably when you get paid. In that case, your money will not last as long as it needs to, and it will be difficult to build up any savings.
#5 Parents should teach their children how to set something aside for yourself.
Without giving yourself an allowance to spend on yourself or to set aside to give you peace of mind, you will — from time to time — overspend out of frustration.
The amount you set aside for yourself doesn’t need to be large, but without taking care of yourself first, you will eventually fall spend more money impulsively than if you set money aside for such purchases.
I recommend using the cash envelope system to keep track of your savings.
#6 Parents should teach their kids how to start saving and investing.
Most people wait too late to start saving money for their future. When you’re young, you tend to think that retirement savings is just for "old people."
In fact, it can even be fun to watch your money grow when you diversify and invest money in a few different places.
#7 Parents should teach their children how to turn a hobby into a way to make extra money.
Everyone needs to be able to make extra money when it’s needed.
Whether it’s coming up with a million dollar Idea or scraping together a few extra dollars selling plastic ware, making jewelry, or rubber stamping, kids need to know that they can make money on their own.
All it takes is a little creative thinking, a good attitude, and a little patience.
#8 Parents should teach their kids how to cook.
You might think that this has little to do with money, but it has a lot to deal with money. A family with no one that cooks will spend at least and extra $100.00 a week on restaurants and take out. By learning to cook, and especially learning to cook from scratch, they will save a great deal of money on meals that they could be saving.
Best Resources For Teaching Kids About Money
In addition to the links provided in the article above, these are the best resources and tips for teaching your children about money: