Before we start teaching kids about money, we need to be sure that we educate ourselves about money.
Kids are like sponges.
They only do things in their life that we as adults do, not what we say we are going to do.
Kids are watching each of our steps.
Teaching kids about money is a controversial topic and no one argues that we should not teach them, but the "How" is the tougher question.
Before we go and pass education about money onto our kids, we need to follow the following few steps: 1.
Educate ourselves.
We can't teach something we don't know ourselves.
How can you expect to pass knowledge onto someone if you do not know something or are not familiar with something.
We need to learn as much as possible about budgeting, about saving, about investing, about cutting expenses, about reducing debt.
Basically as much as possible or as much as you can absorb.
Once we are educated or knowledgeable, then we can naturally pass information onto our kids.
2.
Set a good example.
It's one thing to tell our kids something, but if we are doing the complete opposite, they'll learn more from our actions than our words.
To teach them about controlling spending, we need to do so ourselves.
We need to lead by example.
This also goes in hand with point number one.
Once you are familiar, educated, or knowledgeable, then you can lead by example.
3.
Teach them one habit at a time.
Our kids are not going to become skilled financial planners overnight, or in one month, or even in a year.
It also matters at what stage in their childhood they are.
Our goal should be to teach them these lessons over the course of their childhood and adolescence.
So teach one thing at a time until they've learned the skill, and then move on to the next.
There's no rush.
Persistence and long-term strategy is the key here.
4.
Let them learn by doing.
We can't teach by telling.
We have to tell (briefly), then show, then let them do it or provide them the opportunity to try on their own.
Let them make mistakes.
Soon enough, they'll learn why those mistakes were actually mistakes, and if we set it up right, they'll learn better habits on their own, by doing.
Using these four principles can help us to be better examples and teachers for our kids.
We need to learn how to manage our finances first before we teach our kids about it.
Leading by example strategy is the fastest way to engage our kids to the financial world.
There is no better way to learn, then by just doing.
Kids are like sponges.
They only do things in their life that we as adults do, not what we say we are going to do.
Kids are watching each of our steps.
Teaching kids about money is a controversial topic and no one argues that we should not teach them, but the "How" is the tougher question.
Before we go and pass education about money onto our kids, we need to follow the following few steps: 1.
Educate ourselves.
We can't teach something we don't know ourselves.
How can you expect to pass knowledge onto someone if you do not know something or are not familiar with something.
We need to learn as much as possible about budgeting, about saving, about investing, about cutting expenses, about reducing debt.
Basically as much as possible or as much as you can absorb.
Once we are educated or knowledgeable, then we can naturally pass information onto our kids.
2.
Set a good example.
It's one thing to tell our kids something, but if we are doing the complete opposite, they'll learn more from our actions than our words.
To teach them about controlling spending, we need to do so ourselves.
We need to lead by example.
This also goes in hand with point number one.
Once you are familiar, educated, or knowledgeable, then you can lead by example.
3.
Teach them one habit at a time.
Our kids are not going to become skilled financial planners overnight, or in one month, or even in a year.
It also matters at what stage in their childhood they are.
Our goal should be to teach them these lessons over the course of their childhood and adolescence.
So teach one thing at a time until they've learned the skill, and then move on to the next.
There's no rush.
Persistence and long-term strategy is the key here.
4.
Let them learn by doing.
We can't teach by telling.
We have to tell (briefly), then show, then let them do it or provide them the opportunity to try on their own.
Let them make mistakes.
Soon enough, they'll learn why those mistakes were actually mistakes, and if we set it up right, they'll learn better habits on their own, by doing.
Using these four principles can help us to be better examples and teachers for our kids.
We need to learn how to manage our finances first before we teach our kids about it.
Leading by example strategy is the fastest way to engage our kids to the financial world.
There is no better way to learn, then by just doing.
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