Why You Need to Teach Your Kids About Money

Financial Literacy? Most of us probably wish we’d received a proper Financial education at some point. Imagine if we’d known how to budget, invest, and had good spending habits from a young age? Now imagine if your kids didn’t have to learn this the hard way. Most kids don’t know anything about money, except for how to spend all their money on things they really don’t need.

Now picture your kids instead spending their money on investments and building themselves a small portfolio they will appreciate when they’re older. In the words of Warren Buffett, “Start early…and let your money grow.” School will not give your kids a Financial education. Therefore, only you can give them the skill of Financial literacy.

Teach your kids and they will know to start investing in the right assets to grow their hundreds to thousands before they even have their own kids. If your child knows how to use a credit card effectively and avoid racking up debt, they could start building up their credit score the moment they turn 18 to help them buy a house (which is becoming increasingly hard as time goes on). In fact, if you don’t give your kids a good Financial education, they could end up living with you into their 30s, with 1 in 10 children not moving out until this age (although many of you might secretly not mind this). Who knows, your Financially educated kids could even retire you early. Now, if that doesn’t convince you to give your kids a Financial education, I don’t know what will!

“But where do we start?” we hear you say.

Well, a good place to start is with the free guides, books and resources on our website. The more you know, the more you can teach, so watching webinars, reading about, and speaking to people who understand money and how to grow wealth can help you pass this information on to your kids.

Want to be more specific? Well, look at what Financial endeavours have been beneficial to your life. Perhaps you have a large and well-managed stocks and shares investment portfolio. Teach your kids about it. Maybe you’ve always had great spending habits. Teach your kids about it. Do you have large real estate holdings? Teach your kids how to follow in your footsteps. Teach them about credit scores, risk aversion, and especially the tax laws. Teach your kids to set Financial goals and set budgets so they build a strong foundation for their future.