With the exception of a few, the vast majority of us would have appreciated that our parents taught us from a very young age how money works; And so, in the same way that a tennis player can be the best in the world at 26, because he started playing at the age of 4, we managed our money like experts.
Also read: 13 habits of poverty that you are teaching your children without realizing it.
Given that the current education system educates to go out and look for a job but does not educate to know what to do with money, it is essential that parents take the trouble to guide their children in this which is so important. Have you asked yourself “what should I teach my children about money”?…Would you know where to start?
The blogger, Mr. Money Mustache, is one of the few people who has had the luxury of retiring at age 30, without depending on an inheritance or being from a millionaire family.
Pete made it in the company of his wife, after deciding that their careers would get in the way of being good parents, they made it their goal to retire before their first child was born. How did they do it?…Saving!
They chose to minimize car use and bike more, develop a self-taught spirit to learn new skills to fix their own things, cook more at home and leave restaurants for special occasions, shop for clothes when necessary, and much more.
It was an organized plan which was executed for 9 years. That allowed them to buy a house, fix it up, sell it, and carefully invest for rent so that money works for them, not the other way around.
Also read: 13 characteristics that parents of successful children have.
Like all good fathers, he wants the best for his son, so at home the subject of money is discussed without any taboos and they make sure that his son understands very well where the money comes from, what happens when it is spent, what happens when it is reversed and all this in a practical way.
Here we come to the point…what should I teach my children about money?
What should I teach my children about money?
The boy has a salary consisting of 10 cents for every mile he walks or rides his bike and occasionally some gifts (money) given by relatives. This is how he develops in his son a taste for the bicycle, detachment from the car and it is also the beginning of how to make money.
Also read: How to educate children to be experts in managing money.
Pete is his son’s bank and he has a spreadsheet where every transaction is recorded. The child can make deposits, giving the cash and withdraw the money by asking for it in cash or buying things online. The point is that every dollar that remains in the account earns interest of 10% per year and according to Pete this teaches the boy valuable lessons:
- Understand that money runs out
- He understands that the money invested generates benefits for him and in the long term it means financial freedom.
Above all, Pete’s goal is for his son to understand that money is something that can be controlled, and he also works hard for him to understand the following:
- The income is not owed to the government or an employer, it is something he must generate himself with his hard work and understanding the system.
- How you say the words will make him understand that you are in control of your money. Words like “needs” and “cost of living” take away any sense of mastery over your money because it seems “necessary” to spend on things that don’t deserve it. While “my expenses” give you power over his money and that is the path to achieving financial freedom.
- Finally, that getting money is not the end of the road, that is something that can be achieved at an “early age”. The real challenge comes later when you have to learn what life is really about.
If you have asked yourself “what should I teach my children about money”, you already have the answer. If you consider them useful, you already have a guide on how to teach them at home.
Also read: 7 things you should teach your children to be entrepreneurs.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
