Good day, CNA Finance friends! Joshua has been kind enough to invite me to share some of the reasons that teaching your kids about money is so very important. I’ve recently released a short but powerful e-book on the subject, called How to Teach Your Kids About Money, and I’m here today to share why I think it’s so important that parents make a concerted effort to educate their children in the area of personal finance.
My husband and I grew up in the era when money, on a personal level, was a taboo topic. When I was a kid, very few kids (or adults) knew how much money their parents made, saved, or spent. Debt was also a private subject that you didn’t share with your kids. I believe that this mindset ushered in a bit of an age of ignorance about money. What you don’t know can’t hurt you, right? So why not spend freely until your heart’s content? After my parents’ divorce, I still didn’t know much about either of their money situations, but as often happens after divorce, both my mom’s and my dad’s financial situations declined. We went from making ends meet to struggling to buy food and keep the electricity on. It was not pretty. I was occasionally teased by classmates for being a poor kid, and I didn’t like it. Because I was never educated on money, I thought that the problem was that I didn’t have enough “stuff”, so when I got my first job at 15, my only goal for my money was to make sure that I had the stuff I needed to fit in with my peers. What followed was a relentless chase to keep up with the Joneses. My husband, on the other hand, also had fears about money due to it being a taboo topic in his home. His father often gave him incorrect messages about their money situation that promoted huge amounts of fear in him, and as a result, he never wanted anything to do with managing our money or even knowing how much we did or didn’t have. As you can imagine, our two misguided mindsets about money were a terrible combination. After being married for 16 years, we finally realized that we had to get a grip on our financial situation, and after adding up the numbers, we realized that our debt had grown to dangerous numbers. We soon made a plan to get out of debt, and are now fervently working to finish that plan. In the process, we’ve also made a commitment to teach our children about how money works, so that they (hopefully) won’t make the same money mistakes we made.
Why It’s So Important to Teach Your Kids About Money
Whether it seems surreal at this stage or now, your children will one day make their own money, and as such, will need to know how to handle it. As I look at the adults in the world around me, I see a few different camps. There’s the “We’ve got a healthy outlook and plan for our money” camp. There’s the “living paycheck-to-paycheck but making ends meet” camp. And there’s the “we’re always struggling for cash” camp. Which camp do you want your children to be in? Do you want them coming to you every month, asking to borrow money “just until Friday”, or do you want their money situation to be one of peace and security because they’ve learned how to manage their income – whatever it is – well? Poorly managed money will bring your children a number of avoidable stresses, where proper and healthy money management will bring them peace and the ability to make choices based on what’s best for them as opposed to what their money situation dictates.
One of the very best gifts parents can give to their children is a healthy knowledge and understanding of how money works. Choose today to give your kids that gift, and educate them on the ins and outs of healthy money management.
What were you taught, if anything, by your parents about money when you were a child?
Laurie is a wife, mother to 4, and homesteader who blogs about personal finance, self-sufficiency and life in general over at The Frugal Farmer. Part witty, part introspective and part silly, her goal in blogging is to help others find their way to financial freedom, and to a simpler, more peaceful life.
Awesome Posts From Around The Blogosphere!
In spirit of leaving you with more great reads, here are 2 of my favorite posts done by Laurie about teaching your children about money…
Teaching Kids About Money: How To Prepare Them For Adulthood – Just in case you didn’t know, not only does Laurie own her own blog, The Frugal Farmer, she’s also a major player over at Frugal Rules. In this Frugal Rules contribution, Laurie shares great tips for preparing your children financially for success!
How To Include Your Kids In Budgeting Sessions – Budgeting is incredibly important as we grow up and become financially responsible for ourselves. In this guest post on Mom and Dad Money, Laurie shares great ideas for getting your children involved in budgeting!
Know of any other great posts by Laurie? Let me know about them in the comments…I’ll even approve links to them!