Five things to teach your kids about money
Achieving a healthy relationship with money starts from a young age.
Do you ever wonder what distinguishes you from someone who seems to have it all together financially?
Perhaps it isn't about growing up with a silver spoon but what you were taught about money as a child. We quickly assume that people living a more comfortable life than us must have received better opportunities, but that's not always the case.
A personal finance podcaster, Andrew Giancola from Master Money, says that learning how to apply these five teachings about money from a young age can help change the trajectory of your finances.
READ MORE: Smart tips to help you save money
1. Learning about how to handle money
Allocating an allowance for each family member is vital in learning how to manage your money. He drew on an example of one of the wealthiest families in the US, the Rockefellers, saying that John D. Rockefeller used to ask his kids how they spent their allowance, and their communication of what they did depended on whether they received their next allowance.
Getting straight on how to spend your money and budgeting is a significant first step.
2. Saving more money
Most people already have a savings plan, but it's vital to save a portion of your earnings regularly. So, for instance, when you receive your salary or earnings, take 10% of that and put it in a savings jar or a 32-day savings bank account.
3. Learn how to invest
Learning how to invest your money so that you can see a return on your investment can help change the course of your finances abundantly.
When doing this, you should approach a financial consultant, someone you trust and who is an expert in the field. Also, beware of Ponzi schemes; you don't want to get rich fast and then lose it all. Usually, when a deal sounds too good to be true, it is. Alternatively, you could research this yourself and get advice from your bank; they could offer consultations to their customers.
Giancola says investing will help you retire one day, so it is a great idea to consider.
4. How to give money
Giving forms a considerable portion of why we want to attain wealth: to help those less fortunate than us. This could take the form of taking a portion of your earnings and making a meal for someone in need, or perhaps it could take the form of a donation to a charity you resonate with.
5. How to spend your money
It sounds counter-intuitive to learn how to spend money, but the truth is that spending on things that bring you joy is a way of attaining a healthy relationship with money.
Allocating money to spend on things you enjoy is a motivation and certainly makes you feel good.
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