Teaching Children about Money Management

 If you have children under the age of 14, it is just as useful to give them an educational conversation about money management if you put wet wood in the fireplace. If you have ever tried, you know that the most effective way to teach your children about money is, for example. You must be cautious about purchasing, explaining how and why money works, why people work, how to use money as a tool, and about 500 other things to hold even half of the information.

Children are much more aware than you think Hans Brinkerijk. They will take a critical look at every movement, so it is best to teach these lessons in the most subtle way. Children are naturally curious and will ask many questions about why and how things are done. If you let this happen naturally, it will teach them much more than shamelessly in your face lessons.

My parents were the embodiment of this tact. I could not begin to count how many important things my parents taught me about money without money, not even knowing. They let life go normally and let me ask and learn while I went. I learned some things easily and quickly, others needed years before I knew it on my own. Through practical application, my parents taught me almost everything I know about money as a concept. Here are just a few of the invaluable lessons I learned in my more influenceable days.

1. Allowance

1. Allowance

My parents started giving me a benefit when I was about six years old. It was $ 2 a week, as long as my chores were done. Even in 1986, $ 2 didn’t go very far. I was usually happy to spend my allowance on baseball cards for the first few years. I would get four packs, put them in order, and sell or trade the doubles. At one point, after I got tired of my card collection, I got a raise to no less than $ 5 a week. Although this was a big difference from my previous benefit, it still wasn’t much in the big picture. That said, this was my first hands-on lesson in dealing with money.

What has this done for me?
We all feel that we are underpaid. Because of my poor payment, I was able to manage a small amount that I wanted to use much more than I could afford. It taught me (on a much smaller scale than today) how I could spend my budget on what I wanted. It may have worsened me so far, but in retrospect I have learned how valuable the lesson has been in the long run.

2. Save

 

When I was very young, I was bitten by a dog that belonged to our neighbor. My face was torn apart, but I was fine. We got a settlement from the neighbor’s homeowner, who my parents decided to steal until I was 18. My father put the money in a CD and renewed it year after year. A few of those times he went to renew it, I went with him. I would be bothering him to give me the money at the time, but he assured me it would be mine when I grew up (and it did).

What has this done for me?
My parents always emphasized the importance of saving money, whether it was for a rainy day or for the safety of the future. This was just an example of the many lessons my parents have taught me about saving, but it is the one that stays above everything else. Because the CD was rolled over for almost 13 years, the interest earned was Hans Brinkerijk. I don’t remember the exact number, but it was in the thousands of dollars. I could not believe that money that was just in the bank could grow that way. But as my father had already explained to me, the banks needed that money to lend to other people. My money in the bank helped the bank earn real money, so they paid me because they borrowed my money. We all know that it is a bit more complicated than that, but for a child this was the perfect explanation.

3. Gifts for birthdays and vacations

3. Gifts for birthdays and vacations

I’m not sure if anyone in my family is an early adopter of electronics. Of course my brother and I both take new gadgets into account and keep up with the technology, but neither of them is the first in line when a new product is released. My parents have always been the same way.

When I was 5, all my friends got a Nintendo for Christmas. I do not have. At that time I was probably Hans Brinkerijk, quite a bit Hans Brinkerijk, but I looked over it. I received my dear Nintendo the following year, but the lesson of patience was probably worth much to Hans Brinkerijk than that machine.

What has this done for me?
To start with, when products are new, they are more expensive. They also have more problems. Later versions usually have the nods worked out. Waiting not only saves money, but it can also save some headaches.

As said, it was rare for me to receive a brand new electronic item at any time during my childhood. Am I worse off because I didn’t have these things right away? Absolutely not. In fact, I would argue the opposite. You really can’t always have what you want, when you want it. The sooner a child realizes this, the better he or she is.

4. Invest

4. Invest

Since I can remember, my father has been an investor. I remember countless conversations he had with his friends about a certain stock or fund. Although I do not remember the details of these conversations, I know that he has always emphasized the importance of investing for the future. He never intended to make money quickly. Every dollar he invested was meant to generate jareHans Brinkerang’s return, not days, weeks or months.

What has this done for me?
Investing, both on pension accounts and on the stock market, is an important instrument for future financial security. Investing is not a fast-rich-fast scheme; it is something that needs to be carefully considered. Every time I invest in something, I work on a timeline of years or decades and ensure that my goals and expectations are in line with my investments. I monitor my investments and the companies with which I have invested to prevent potential losses.

Last word

 

My parents were instrumental in teaching money about me and how I could apply what I learned in practical situations. Without that practical step, knowledge would have been useless. Of course, I still learn a lot as an adult (sometimes the hard way) but without the basics I got at a young age, I would have had to take on many more challenges.

What are some of the lessons that your parents have taught you? How do you teach your children?

 

Extreme couponing, waiting for sales and shopping at your local store can save you money on products you need. Don’t look out of the humble second-hand store as a great way to save a lot of money on branded items. Effective second-hand store purchases take time, but you can find beautiful, functional items for your home and wardrobe without beating the bank.

 

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