3 Highlights: Dave Ramsey – 15 Ways to Teach Kids About Money!
To raise awareness on the importance of financial literacy education, beginning today, we will periodically highlight and review articles on teaching children about money. We will share a few thoughts on 3 points from each column that HOP off the page to us. We would be delighted to share one or two of your thoughts as well. So, let us know what you think.
Today, we review 15 Ways to Teach Kids About Money by personal finance author and radio show host, Dave Ramsey.
Here are three highlights from the article.
… If you don’t teach your kids how to manage money, somebody else will…
We think parents want to recognize:
(1) Whether they do or don’t “consciously” teach their kids about money, kids are learning about it anyway.
(2) That learning starts essentially from birth and perhaps in the womb. Whether parents are aware of it or not, they are sharing and spreading attitudes, feelings and possibly critical thinking about money all the time,
As Dave Ramsey indicates, the BIG question is, “who” is consciously taking charge of that education, you or someone else?
…Set an example...
Sammy Rabbit wholeheartedly agrees. The best way to lead is by example! In fact, this philosophy was the inspiration for the Sammy song titled: Show My Family the Way!
Frequently, but not always, children learn by copying their parents. It seems to be an instinctive part of our human nature. Here is an outstanding article that describes why role modeling and “mimicking” matter. It is titled: Imitation.
THAT SAID, if you are not leading or setting a strong example, DO NOT let that stop you from parenting and teaching your children great money habits. Your kids will be thankful you did.
The basics of money are not complicated.
Make a habit of saving and investing. Small amounts set aside regularly add up. Furthermore, they help keep a person focused and thinking about how to manage a limited resource and make the most out of it.
Spend smart. Spend less than you earn or receive. Compare, contrast and ask questions before spending. Focus on “value” and “values.”
Earning money is a great habit and fun to do. There are lots of ways to make money. Your money can earn money for you, IF you give it a chance!
Avoid, minimize, think through debt.
You can not get something for nothing.
Have a plan. Set goals. Work your plan.
Yes. There is more they will need to know. But, if they are educated on these concepts, you will have helped them build a solid foundation for them to grow their financial freedom and security.
Don’t just give your kids money for breathing. Pay them commissions…
Oh yes! Who does not like to get paid? Regardless of the activity, incentives make a difference.
And, in addition to the monetary reward, helps kids develop a work ethic. I have had the good fortune to talk to and interview hundreds of people about their most important childhood money memories. It is amazing to me how many share that earning money and developing a strong work ethic as a kid stands out as one of the most important factors in contributing to both their adult success and self-worth.
SHARE YOUR THOUGHTS. What HOPS off the page at you from today’s article, the The Balance article titled, 15 Ways to Teach Kids About Money!
SEE more Sammy reviews of articles on teaching kids about money.