This is a subject that most adult don’t like to think about, or even talk about because we are so bad at it, but we need to educate our kids about how to manage money and the value of money. As kids most of us were never taught how to save and respect the power of money, but we witnessed our parents living above their means, making terrible financial decisions such as
1) Changing cars every two years
2) Having multiple credit cards
3) Buying expensive accessories for kids (brand name products) instead of vital school resources (books).
We need to invest the time and educate our children about the credit system, the value of banks and responsible shopping. These three concepts could be the secret to financial prosperity or financial disaster. The best way to get them on the right track is not forcing them to do it overnight, but help them develop this as a lifestyle, practice a few basic rules and explain reasons behind them
1) Don’t spend lavishly, buy what you need until you can afford what you want.
2) Have 1 or 2 low interest rate credit cards and use them sparingly or only for emergency.
3) Always discuss bills and financial issues around them, they have to get use to financial terms from
early.
4) Don’t follow or get caught up in the latest gadgets for instance, Iphones or games this will get you in
debt fast and set a bad example.
5) Get them debit cards with restricted balances and monitor their use, let there be consequences for
overdrawing the limit on the card, this will teach need against want.
6) Buy and keep financial materials in the house (money magazine) and get special financial books for kids
Robert Kiyosaki’s (Rich Kid, Smart Kid)
Please ensure your children is financially literate encourage them to watch financial programs like CNBC or CNN money and make them read regularly because this will be an essential asset for survival in the future.
Mark
CEO
