A Firstline Securities Limited Blog by: Garette Sealey
They say that “children are the future” and that “knowledge is power.” If such is the case, then it goes without saying that in order to put my children in a position of power in the very near future, it is my job to teach them all about the value of money.
I have two boys: ages five and four, and teaching them that the “red one” (TT $1.00) and the “blue one” (TT $100.00) are different in worth, but are both very valuable, is quite a task.
The following is my two cents knowledge and insight which I try to pass on to my sons. Hopefully you in turn share with your children!
Teaching Children Money-Saving Tips Through Open & Honest Communication
When my children were younger, I used to feel embarrassed to explain to them why I couldn’t purchase a brand-new game, toy, or whatever caught their interest at the time. Within recent times however, I realise that I can use these situations as opportunities to teach. Let me explain. By being open and honest with my children about money, its worth, prioritising spend etc., I have been able to teach them instrumental financial lessons, such as the importance of saving. I have even noticed that this communication has the potential to go a long way in preventing them from picking up poor financial habits in the future.
I also believe that one of the most crucial facets of parenting, and teaching children about money, is to keep them in the loop. We constantly have unencumbered dialogues about a myriad of topics with our children: so why not include saving, investing and spending? Put another way: talking about the trade-offs and compromises in spending choices can be much more powerful than simply saying “no”.
Impulsive Buying or Spending on a Whim should be Cautioned!
Strategies and Practices
What to Remember When Teaching Children About Money
CLOSING THOUGHTS……FOR US PARENTS
Earning an honest dollar a day takes willingness and hard work; saving 0.50 cents from that dollar requires sacrifice and discipline; and investing the savings requires patience and knowledge. Every day is an opportunity to learn something new. I know situations differ and what works for one may not work for another, but I urge you to analyse your situation from the perspective of “want” and “need” and for the persons undecided, “what’s in between”. If you’re thinking to yourself “I live cheque to cheque with nothing to cut back” I say to you then: bank the experience and the knowledge for use in the future!
Firstline will still be here when the time comes!
That said, my main takeaway is that getting your children started early is one of the best decisions you can make for them, and you should keep teaching as long as possible (even when it may appear as though they’re not listening). Remember we are the adults and parenting is our career!