7 Money Lessons Your Kids Should Learn from an Early Age
Now that I keep struggling with my daughter’s complaints about money, I have realized that it is best to start teaching kids the most important money lessons from an early age. Money has already ruined many happy couples, true friendships, and authentic personalities and it starts affecting modern children as well. Before it is too late, make sure your little ones learn the following money lessons.
1 Not all parents are millionaires
And they can’t be, no matter how hard they try. Modern children strive to have it all and at once and never stop asking for buying the latest version of iPhone or the larger tablet. They are obsessed with material things. The reason is the Internet. My daughter spends too much time watching YouTube videos about rich kids and luxury lives and often end up feeling depressed that she does not have such a life.
I can’t forbid her to watch all those videos since she does it when I am busy with my own stuff. But what I can do is to teach her that not all parents are able to buy anything kids want. Even many celebrity parents do not purchase everything their children want. My daughter and I often talk about the poor kids who are grateful for a piece of food and some torn food.
Yelling does not help, so I choose the right moment for this talk so that my little princess could listen to me carefully and discuss the problem like an adult. I want her to focus on the things that have nothing to do with money and appreciate her parent’s hard work as well as paychecks.
2 Money does not buy happiness
I had always believed in the myth, ‘The more money you earn, the fewer problems you have. Having lots of money is fun, but in reality, big money causes big problems. All those bucks can bring temporary happiness into your life, but in the end, they will not make you happy. Never. Just because a wealthy person can buy a big house does not mean they are happy. Happiness does not depend on the circumstances. It is a choice that you have to make every morning.
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3 Smart money choices make a family life easier
Luckily, sometimes my daughter realizes that it is best to buy food than a new toy when our family is very low on budget. I am not afraid to go shopping with her because I know she will not spend a dime on the unnecessary stuff when our fridge is empty. She can even give us her savings when we do not have money for food or anything important. This is one of the money lessons every child should learn at an early age.
4 Cooking at home is an easy way to save money
Eating out is a part of every modern person’s life because it seems impossible to cook with a jam-packed schedule. However, eating out can quietly drain the wallet and destroy your health at the same time. Try to cook together as often as possible to show your kids that cooking at home is actually a fun activity and it is a simple way to save money on a family vacation or a new toy.
I ate myself into debt many times so I do not want her to commit the same mistakes in the future. When she wants a pizza, we make it together. When she craves chocolate, we make some treats together. No need to run to the nearest supermarket to buy the food that is not only expensive but unhealthy as well.
5 How to turn a hobby into a business
Thanks to the Internet, it is totally possible to turn your hobby into a job and earn tons of money for a luxury living. Just check out how many kids make money on YouTube, Instagram, or Etsy. Help your children use their skills and hobbies to earn some extra cash for toys or treats. They will be proud of themselves and your family budget will be flourishing instead of draining.
Your child should understand that money is a reward for hard work. It does not grow on a tree. People work hard to buy the essentials, so they can’t splurge on the things that can wait. If your little one can’t earn some bucks online, consider giving out some money for chores. Let them spend it as they wish.
6 How to hold money safely
Many children (and adults alike) are guilty of losing money. Even though the amount is not big, it is still money. Your child should learn how to keep cash in a safe place. It is important that your child has a wallet and teach them to keep their money in a safe place in their room. This will help them avoid losing money in future and be more responsible with money.
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7 Debt is a real trap
If you or your husband is getting into debts on a regular basis, chances are your child will live a life full of debts too. It may be tempting to run into a debt to purchase something you need or want, but your child should realize that debt is a real trap. It is always to spend a few months saving for that item than spend a few years trying to pay off the debt.
Do not encourage your child to use a credit card at an early age. Avoid using credit and debit cards when you are with your child. Try to pay for things in cash. This money lesson is beneficial to both parents and children.
Finally, teach your child to be grateful for what they already have and show them that it is more rewarding to give than receive. No matter your child’s age, start teaching them money lessons today. They will thank you down the road. You can learn those money lessons together because adults often commit more money mistakes than kids. What are the money mistakes you are guilty of making?