Teach Your Children Finances Now
By Varnell Bien-Aime
Often times I am asked, as an advisor what do I teach my kids about money or finances and how do I do this? Well allow me to tell you that financial literacy needs to start as soon as your child can understand that they need to ask permission to get things.
The first thing I do is teach them that you can’t out gain financial ignorance. So a lifetime of learning about how to save, spend and invest will make their financial future solid. I recommend to them
to be smart but always seek advice of professionals like a financial advisor and wealth manager who does this full time. The same mistakes you make as twenty year old in financial matters, you’ll make as a forty year old if you didn’t learn the discipline and the sound financial principles
The next thing I share with them is that your finances are personal. Never gauge your success by the financial spending discretion of others. Too often people find themselves trying to keep up with the Jones’s, so in doing so they purchase a home that is too much or by a car that is out of their life-style. Spend below your means but not under your privilege. A thirty thousand dollar car if you make thirty thousand a year is not practical, your vehicle should not be your biggest expense even if you don’t pay rent or mortgage, at the same time if you make $30k a car note that is $180 a month is below your privilege.
Debt eliminates choices. The more debt you have less choices are available to you.
The best way to teach these lessons is a friendly game of monopoly. Have teachable moments when you see moments when you can educate and remember to have fun!