Photo: Getty Images
by Sheena Robinson
When you think about how money plays a part in your personal life, do you have a positive or negative response? Many people tend to have a negative response. They are usually disappointed with not having enough money to do the things they desire.
As I engaged in conversation with many adults, they often talked about looking for a better career or wanting to start their own business just to make ends meet. I had to stop and ask myself what the common theme was. It was as if everyone was crying out for help.
I began replaying my own childhood experiences and realized how I only saw money as something to buy what I wanted rather than a tool to help build my future. As a result, I found myself not understanding the true value of money until my 20s. Like many adults I talked to, I didn’t understand how to have a healthy relationship with money.
As a financial parent, it is important for you to start teaching your children as early as possible how to have a healthy relationship with money. Although you can buy a lot of materialistic things with money, you should not allow that to be your child’s focus. You should help them see the short-term and long-term effects money can have.
To help you get started in your journey, I have listed 5 benefits that happen when you intentionally teach your children how to properly use money.
- They can have healthier relationships. Statistics have shown that one of the main reasons couples split is because of finances. When you help your children learn how to value and save their money early, you help them begin putting money away that might save them from divorce one day. Saving early also limits the chances of your children wanting other people’s possessions.
- They can have more freedom. The earlier your child learns how to manage their money increases the chances of them living their dream life. They can take more vacations or spend more time with their kids. They can have a flexible lifestyle by not working a full-time job or have their own business.
- They have a chance to retire early. When you introduce children to the idea of investing their money, they can learn the power of interest. Many people work so hard for money, but never learn how to make money work for them. As a result, many people lose money due to inflation and taxes. It is important to help children understand that they don’t have to retire at 65 if they have a secure strategy in place that will help sustain them during an early retirement.
- They can develop an attitude of gratitude. It is important to teach your child to share their money with others for a good cause. The rule of thumb is to ask your children to give back at least 10 percent. You should also expose them to an opportunity to give back to the community with their time. By helping them see others in a vulnerable state will help them stay sensitive to the needs of others.
- They can have a more positive outlook. When children understand the role of money in their life, they won’t allow it to dictate their attitude or take over them. Many people often think money is evil. However, it is the love for money that is evil. Children can operate in confidence when they understand their role and the role the proper role money should play in their life.
Having an intentional conversation about money with your child is key to helping them not become consumed with only the things money can buy. When you start teaching children the benefits of money early, you allow them to build a strong solid financial foundation. As children begin to have a healthy relationship with money, the better their future will be.
Sheena Robinson, The Financial Parent Consultant, is a certified financial educator, certified life coach, entrepreneur, empowerment speaker and author of Financial Parenthood: The Keys to Raising a Rich Kid. She is the founder of Diva 4 Wealth LLC, an organization dedicated to helping women become more financially savvy. She is also the founder of Financial Parent Academy, a 501(c)3 organization committed to helping parents and children with financial success. To contact Sheena, you may email her at firstname.lastname@example.org
Photo credit: Anthony Cody
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