What Financial Lessons Have You Taught Your Kids?
We all want to raise responsible kids. To raise money-smart kids, we need to share financial lessons to teach our kids. Every fall, a new school year begins, and it comes time to fill shopping carts with No. 2 pencils, protractors, and all the goodies the kids will lose by the second day of school. It can be even more exciting if they’re headed off to college. But, instead of needing you to replace their pens on day two, your college-aged child will probably be calling to ask for money. That is unless you have taught them some financial lessons.
It’s such a ritual that, at this point, many of us don’t question it. But how much do our kids actually know about money? You might only want to include the lessons you taught them because their school probably didn’t teach them much.
Common Core and other national guidelines don’t include many requirements for teaching budgeting skills, balancing a checkbook, or even explaining basic concepts such as credit, loans, or mortgages. Each child will need to learn the basics of finance from their parents. And don’t wait till your child is headed off to college…teach as they grow, starting when they are young. To get them started, ensure they have a Dollar Dog Kids Club Account or an iSAVE Teen Account from Elevate Credit Union. Or, any type of kid’s account will do!
We talked to some credit union members about the lessons they want to pass on to their kids, and below, you’ll find some of our favorite experiences to teach your kids.
PAY YOURSELF FIRST
No one else will make you a financial priority, so don’t make them your financial priority. Paying yourself first is a habit you want to have! Most people wait and only save what’s left over…that’s paying yourself last. And let’s face it, often there isn’t anything left over, so pay yourself first, and you will be on the right track!
BUDGET
Check your budget if you want to know if you can afford something. If you have to check your checking account, you can’t afford it. If you reconcile your accounts every month, you’ll have a pretty good idea of how much is actually in each account. But having enough money isn’t the same thing as having enough money. Plan ahead. Make a budget. Execute the program by sticking to that budget.
TAKE RISKS WHILE YOU ARE YOUNG
Take risks while you’re young. You can afford to be more aggressive with your retirement and college funds while you have plenty of time to make it back up, so don’t be afraid to push those funds a little bit. That said, not saving for retirement is not a risk. It’s just a bad idea.
KEEP THINGS BALANCED
It’s healthy to teach your children not only to save but also to budget and spend. It’s not realistic to focus exclusively on saving because, in the real world, there is so much more. So, keep things balanced when you teach them about money, and it doesn’t hurt to make learning fun! These financial lessons to teach your kids are not so hard. You can do it.
Whether your kids are in diapers or their kids are wearing them, it’s never too early or too late to teach financial literacy. Ensure you’re instilling the right lessons, and check back in with Elevate Credit Union because we’ve always got plenty of resources for young people to learn the lessons they aren’t getting in math class.
What a wonderful way to put it, Kevin. Delaying gratification is a gift we can give our children and by doing so we will be teaching them a valuable skill that they will benefit from their whole lives.
Individuals must teach their kids to differentiate between needs, want and luxuries. Children want instant gratification, but creating opportunities for delayed gratification is one of the best gifts parents can give children.