Our kids. We hope that their lives will be free of trouble and pain. Especially, free of any trouble of their own making. If we neglect our kids financial education they may stumble. Let's talk about ways we can help those honeys.
Self-control - To save we learn how to wait, practicing self-control. How to delay gratification for some future promise is the point of self-control. With our money self-control is demonstrated in the ability to save. Not hoarding, but saving. All of us have tendencies to be savers or spenders. Meaning that we, as part of our natures, handle money more in one way than another. So for some of us delaying gratification might be more challenging than others. Helping kids understand WHY one might wait is a key point.
The author of the 2009 WSJ article in which I read this, said he played 'the soda game.' The soda game is that Dad would offer his kids $1 or he would buy them soda or a soft drink when they'd eat out. The kids, a boy and girl ages 10 and 14 at the time preferred the $1 and drinking water to the soda. They'd spend Dad's money from here to kingdom come preferring spending Dad's cash to their own money every time. Perhaps you think this is manipulative. Instead it is a real-life example that makes spending money very real and personal.
Risk- When we save, especially as we get older, we have the availability of investment options that may be risky or safer. Finding a balance that's right for each person is a key job of a financial advisor. Helping kids understand various risk and the possible benefits of each risk will help them see possibilities.
Values- Share your values with your kids. Share serving, generosity, charity and stories of hardship to teach your kids about money and to help them value their blessings. Bring them to a local shelter to serve food. Tell them the story of your car that was the Barney Rubble-mobile with rusted floorboards or the car with a gas can on the front seat because the gas tank on the car was rusted out.
Your kids will have trouble in life because trouble is just part of life. But wouldn't be awesome if they knew more about money than perhaps you knew when you were younger? Many of say we wish we'd learned, but most of us don't teach our children. Get to it, parents.
Citation
Marion Syversen, MBA
NorumbegaFinancial
207.862.2952
Marion@NorumbegaFinancial.com
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Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc., Norumbega Financial and all other entities listed herein are separate entities, independently owned and operated.
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