(ThyBlackMan.com) As a parent, it is your responsibility to mold and shape your kids’ future and character in all aspects. It is crucial to provide them guidance when it comes to making choices. Children nowadays are smarter than you think. With all the pressure coming from social media and technological advancements, it becomes more challenging than ever to teach them proper spending habits and to make them identify the difference between “a necessity and a luxury”. Here are some principles on why you need to nurture and educate them while they’re still young;
To help them practice the “Wants versus Needs” attitude in spending
In this modern age and time, kids are more exposed to a variety of things like new gadgets, high-end brands, and the latest trends in fashion. It is natural to want the best for your kids. However, you need to make them realize the difference between a “want” and a “need”.
You can practice such principle on a day-to-day basis. When you go grocery shopping with your kids, educate them by taking the necessary things first (needs). When you’re done with your needs, make assessments with other things (wants) based on what is left in your budget. This can educate them about the difference between the two and enable them to create decisions based on their own judgment.
Whenever they think about buying something, ask them if it’s something they really need or it’s just something that they want. By doing so, you are allowing their young minds to make small decisions that will benefit them in the future.
To make them realize that “Not all that glitters is gold”
Make your kids realize that not everything that’s nice and flashy is worth having. Material things like gadgets and a luxury bag are nice to have but they lose value over time. They don’t stay that way for long because they can easily be replaced; and once new things come along, they’re considered outdated. Your personal finance skills in 2019 will likewise improve in the process because you are not merely educating your kids but you’re obliged to “walk the talk and practice what you preach” as well. Teaching your kids can go a long way with your financial planning because it can serve as your benchmark to building your own personal savings.
Practicing this principle can help both you and your kids appreciate the long-term benefits of saving money versus spending it on things that provide temporary pleasure.
To help them learn the value of money
Nowadays, kids are smart enough to know that money doesn’t grow on trees. Kids can also easily differentiate a lavish lifestyle from a humble one. Credits to social media and television. Thus, you have to be honest enough to tell your kids that money results from hard work and diligence. It is important that they learn the concept of how money is earned in order for them to learn its value. By doing so, you are opening their eyes to the reality that working hard and being responsible can guarantee them a brighter and more stable future.
Educating your kids on how to handle money is a challenging task. Expect to hear a lot of “why’s” and be prepared to answer a handful of questions. Remember, training your kids at a young age can spell a lot of difference in their ability to make decisions in the future. It can also make them realize the things that are far more important and relevant in their daily life.
Staff Writer; Fred Barker