If you plan on having kids, come closer! Even if you don’t plan to have kids still read, you can glean a few principles that will help you somewhere somehow.
One thing we can all agree with is that rich people plan for their future, and not only theirs but also their kids’. As a result, we see wealth being passed from one generation to another. They have learnt to live in the present but also plan for the future. They do not leave their resources to time and chance. They take specific and calculated steps on how their wealth can be kept in the family for generations after they have left.
Quite a number of people have vowed that their kids will not live in the same circumstances and experiences they passed through and we see their determination and grit towards achieving that goal.
It is true that many people have been shaped by their background whether good or bad, while others have refused to let their background define them.
We have so much information in our age and knowledge is always at our fingertips. You have the ability, unlike most of the parents from other generations, to give a solid foundation to your children, especially financially.
Yes, your children are individuals that will eventually grow up and make decisions for themselves but you have a level of influence on their lives and giving them a good background financially will give them an edge in life.
When we talk about wise money decisions, it is not just accumulating wealth and passing it down to your kids but also knowledge on how to manage what they have been given.
Let’s dive into the wise money decisions you can make that your children will thank you for!
1. Avoid debt- This is one lesson you can teach your kids even while you are still with them. Let them understand that accumulating debts is not the best, using examples from your own life experiences. Show them how to be debt-free.
It is no news that some people even after their demise leave their unpaid debts to their kids and family members. Your children will certainly not thank you for this. As long as it depends on you, avoid debts while you are living and that way, your generation will suffer for it even after you are gone.
2. Teach your kids about money, intentionally- From a very young age, teach them the value of money, and the importance of saving. Gradually introduce them to the difference between wants and needs, and teach them the importance of jobs and making money.
Talk to them about investments, goals, entrepreneurship and passive income. Yes oh! There are a lot of things concerning money that you can introduce to them that give them a basic orientation of what finances is. Even if you are not the richest on the planet, teaching your children money principles is something they will be grateful for.
3. Invest in your children’s future- This is super important. Invest in their education, and allow them to try out their passions. Expose them to lessons and classes that will aid their growth in life. Let there be a balance between work and play. It might seem like you are wasting money by doing all these for them, but no, it is actually is a great way to strengthen them as individuals.
4. Buy properties in their name- No, you are not going overboard by buying your kids properties. It could be residential, industrial, commercial or just landed property. The value of these properties is appreciated with time and when your kids are old enough to manage things, it will serve them well.
5. Talk about different ways to pay- Let them know that there are different ways of paying for things – from cash and traditional debit or credit cards, to paying with contactless cards or even using your mobile phone. Have they seen or tried any of these beforre? Talk about some of the pros and cons of payment methods – e.g. using a contactless card is quick and easy, but you can be tempted to overspend.
6. Emphasise the importance of security on everything fincnaces- Make sure to always talk about how important it is to keep personal details safe and secure, and not to share the passwords or PINs we use with others.They must also learn to stay vigilant on the internet so as not to become victims of online fraudsters that prey on innocent people.
7. Show them how you make spending decisions and run the home- Get your kids involved major and minor spending decisions, such as buying a new kitchen appliance or personal devices. Let them see how you pay bills and save money while managing the household budget.
This way, they can grow up making real life spending and saving decisions about even small amounts of money and then understand more about managing their money and becoming responsible adults.
Are you raising financially-responsible, independent and confident children? Which of these would you love to explore more for your children or when you have your own kids?
