Sadly, many kids’ financial knowledge is limited to the idea that money comes from ATMs and that you just need to swipe a card to buy something. As adults we know it’s a bit more complicated and we struggle to teach our children how to manage their funds. If you made money mistakes as a young adult (college credit cards, too much debt, etc.), you want to prevent your kids from going through the same thing.
Most of us learned about finances from our parents. According to the 2013 Consumer Financial Literacy Survey for the National Foundation for Credit Counseling, one-third of U.S. adults learned about personal finance from their parents, yet the vast majority believe they need professional advice and nearly half of those surveyed give themselves a C or below when it comes to their financial knowledge. If your parents were thrifty and taught you well, congrats! If you finally see the light after repeating their mistakes, take some time to make sure your kids do better. It doesn’t have to be formal training—remember kids learn best from what they see and hear. In fact, entrepreneurs like Warren Buffett and Bill Gates are helping to educate the next generation though the animated series, Secret Millionaires Club. To get parents involved, Mamiverse came up with 8 lessons on teaching money to kids to get you started.
1. Money doesn’t equal happiness. One of the most crucial lessons to teach kids about money is that having it doesn’t guarantee happiness. To prove the point, plan a family activity that costs little or no money. Take a hike, plan a picnic, watch a Little League game. Teach your family that you make your own happiness and it doesn’t have to cost a thing.