When you teach your kids about money it sets them up for success later on in life.
Lessons in money are as important as any other.
You may recall the scene from the TV miniseries, “The Jacksons: An American Dream.”
Young Michael is sprinting home from the candy store only to meet his daddy, Joe Jackson, in the yard.
Michael had the look of terror in his eyes because he knew that his daddy could be a hard man. Joe goes on to ask him where he’s been. Michael tells him that he just went to the candy store.
Joe asks, “Is this where it all goes!?! Every penny you earn?”
Michael goes on to say that he’s “Not going to eat it. I’m going to sell it in my candy store.”
Joe asks, “How much do you pay for it?”
Michael responds, “a nickel.”
Joe then asks, “How much do you sell if for?”
Michael responds, “A nickel.”
Joe then goes on to tell Michael to stick to singing.
Joe Jackson had a point. He saw that his young son wasn’t necessarily the most business savvy youngster. Michael didn’t know a thing about profit margins.
But what if Joe would have taken the time to see this as a teaching opportunity?
As parents, aunts, uncles, or grandparents it is very important for us to teach our youth about finances.
Money is something that is involved in nearly every detail of our lives. It cost money be born into this world, to be raised, and to live day to day as an adult.
Our children will inevitably have to deal with money. The question is: Will they control their money, or will their money control them?
We have opportunities all around us to educate our youth on finances.
“Do you really need that pair of $200 Jordans?”
“Is eating at McDonalds 4-5 times a week a good investment?”
These are simple questions that we can ask. But you also have to be sure to offer a solution, or at least help them find a better option.
Our children are our future, and it is crucial for us to teach them.
Even if we feel our knowledge about finances is limited, it is ok to work with those we trust to be sure that our children’s financial future is going in the right direction.
When we learn about money ourselves and when we have a mentor who is helping us, it becomes that much easier to pass on financial literacy and wisdom to our children.