Guest Post by Terry Pena – One Tenth Consulting
It is sad to say that many children have little to no concept about money. Many children know that you need some sort of money to buy things because they see you take out the money and or pull out the credit card, but for many that’s all they know. Here are 5 reasons why you need to teach your kid about money.
Money Doesn’t Grow On Trees
As adults we know that the money we have has been worked for or attained in a specific way but many children have no idea where it came from. We need to take the time to explain to our children that it was worked for and that every day we perform different tasks in order to get money through a job, a business and or any other way that may be specific to your home circumstance. This concept is very necessary when they are much younger but many parents wait much too long to explain this dynamic. It’s also important to explain how much is made on a daily or weekly basis and what percentage of it goes to bills and luxury items. Those $120 dollar sneakers they want may not seem like much to them but when you compare it to a bill or to how many hours or days it takes you to make that money, it changes the way they look at it.
We all have different personalities and ways that we have relationship with money. Some people tend to save everything they have for a rainy day and others get it and spend it all in the same day. If you don’t work with your child on establishing a good relationship with money when they are young, you won’t have the chance to shape a healthy relationship. They will leave your home and have no idea what to do with their paycheck and their natural urge to just spend frivolously can dominate their finances.
It Can Be A Clutch For The Rest of Their Lives
If you don’t teach your children basic principles when they are young, it can and will affect many areas of their lives such as honesty, sharing, stewardship, responsibility, generosity and so much more. A child that is taught to see other’s needs, give time, toys, clothes or money when they were little, will most likely carry this principle with them when they get older. If we want our children to be givers and make a contribution to their community, it needs to be modeled and done when they are small.
Getting The First Job
If we teach our children from a young age the concept of money especially how to generate it, they can kick start their entrepreneurial side. Many first jobs like mowing lawns, lemonade stands, selling of art work or trinkets and much more have started from a young child’s desire to acquire money. They understand that to have money you must create something and or work for it. This can catapult them into the business world at an early age. Once they have a job it’s a perfect opportunity to start teaching them savings, spending and giving right from the beginning of their work experience.
More Money More Problems
The lack of financial education can cause issues. Not having a health relationship with money can create many problems for your children when they are no longer at home. They will need to balance monthly bills, buy their own items, address student loans and so many other things that they will encounter out of their mom and dad’s nest. It can even carry further implications for their lives because it affects their ability to live independently or in a marriage.
While they are still home, while they can be taught, we need to invest time into their knowledge of money. Make sure your children leave your house having been able to manage a savings and checking account, having been accountable and honest with money, having been generous with their time and equipped to face the world ready to manage their finances effectively.
If these 5 points spoke to you lets also remember that everything starts with you. In order to impart these principles into your children’s lives they must first be part of you. At One Tenth Consulting, LLC we train and equip people with financial education so that they have the ability to make effective decisions about the use and handling of money. Our vision is to lift up a generation of leaders and entrepreneurs founded on biblical principles for finances.
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