According to Katharine Whitehorn, ‘The
easiest way for your children to learn about money is for you not to have any.’
The question is, will you because of your children not work to earn money or
not work to be rich? Though, there is an atom of truth in that saying; such
that Bill Gates said, ‘That I was born poor is not my fault, but if I die poor, then it is my fault’.
Some parents
have so made it that they did not allow their children to know how much they
are worth so they won’t see the need not to work for their own money. Mark
Zuckerberg said in his words that the only thing he owes his kids is a $10
million each. He also said the proper thing he owes them is education and he
has given them; they should therefore make their own money.
Well, I would remain indifferent in
this regard, I can’t advise that you let your children know how much you are
worth, and I wouldn’t say you should hide your riches from them; all I know is
that, if you teach your kids on how to
handle money, you wouldn’t have a reason to worry unnecessarily whether you
should let them know how much you are worth or not.
See also:
10 Rules of Success in Life
Our opinions are quite
different and this should be respected, hence, this article will open our mind
to the things we need to know and how to train our kids on the making and
handling of money. So, what are the things we should let our children know
about money;
#1 What is money and importance of money
This is one of the important points
you must expose your children to and this should be taught between 3 – 5 years
of their age. Let them know money is a substance used to get a value, good or
services. Also, explain to them the different currencies we have and the
different values of money we have. Further, let them know that money is one of
the important avenues to get things done and quickly. Without money, your value
in the society will be low. Let them also know that the money they get as gifts
or anything can be exchanged for values and services. This will start to open
up their mind for subsequent knowledge of money.
#2 Start to give them allowance
The
best way to help a child know the importance of money is to give him the money.
This will make them powerful and proud. This can start as early as 5 – 9 years.
Let them see that they can also make money or possess money. This helps their
money management skills. If possible, give them money at the start of the week,
and tell them it is for the whole week.
Don’t be surprised when your kid in the
first two weeks spends the whole money for the week in one or two days. Yes, they
will. When you didn’t give him money again for that week, reality dawns on the
child that you mean business. That becomes the best way the child will learn
how to be responsible.
See also:
#3
Open a Savings account for them
Just between the ages
of 9 and 13, your child can have a savings meant for kids in the bank. Let him know about interest and explain to
him that the more money he saves, the more interest he makes and the more money
he has. This will initiate some intelligence in him and will actually see
the need why he should make more money. The money they get as gifts should go
into these accounts and inform them of the growth in the account.
Then, for the
things they tell you to buy for them like toys and new clothes, tell them to
save to buy it. Make it like a goal for
them to achieve, let them save seriously from the allowance you give to them,
you wouldn’t know how much you have helped them by this singular act till they
are of age.
#4
Introduce them to Entrepreneurship
At the age of 13 – 15,
the gadgets, clothes, electronics your kids use are more expensive than before.
Also, the allowance they get increases. You spend more at this stage because
everything they need is quite expensive even to their school fees. Well, you have to let them know they also have
to help you in one way or the other even if you could handle it all. Let
them know you can’t provide all they need and they need to start earning.
Identify their interests, strengths and weaknesses. Introduce them to business
ideas they can do that won’t stress them and would make them make little change
to augment what you are giving them. Let
them know that anybody can earn and make sure you support them in the path you
laid their feet. Always guide them properly and let them know they can
access you when they need you. They can as well help their neighbors or work
for them just to earn a penny. After all these, you will need not to worry how
they will manage your property when you are gone.
#5
Help them with a debit account and make them a manager
You have done the most
part of what is required of you and finally, you need to make them manager of
their own lives and destiny. You can’t be with them forever, so they have to
learn now that they are responsible for their own lives. Open for them a debit account;
let them have an ATM card, and teach them to run their own account both online
and offline.
See also:
The previous knowledge you have given them will help them to
manage it properly. You will need not worry much about what they are doing with
the money unless you didn’t do an adequate job on the earlier points.
‘As an end, the acquisition of wealth is ignoble in the extreme; I
assume that you save and long for wealth only as a means of enabling you the
better to do some good in your day and generation’ - Andrew Carnegie
We hope you have learnt
one or two things, please follow these to the latter, share with your friends,
and also leave comments and recommendations for us. Thanks.
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