My dad is great with money. He is retired and living quite comfortably off the nest egg he built himself. Unfortunately, my parents didn't do the best job of teaching me about money. My mom would take me shopping and she always used a credit card - never really explaining how it worked or how they used it (payed if off right away, in debt etc). So when I grew older, it took me a lot of trial and error to learn how to properly manage and save my money.
I had a wonderful conversation today about teaching your kids how to handle money. I've thought about this a few times since my son was born - wondering how I would teach him to be wise with his money. I'm sure these ideas may adapt as he gets older and we get closer to that stage of him earning money, but today I got some really good ideas.
It's actually very simple.
- Find a way for your children (even at a young age) to earn money. Now I believe children should have chores they have to do and don't get paid for - but there can be "extra" things that they can do to earn money.
- Then have them separate that money into 3 "banks".
1 - savings (should be 30-50% of what they earn)
2. Charity (perhaps 1/4 - 1/2 of what is left)
3. Frivilous spending money (to be used right away or saved up for a large purchase).
I don't know about you - but I LOVE this idea. It opens up discussion about how to spend money, how to save money and the importance of giving to others less fortunate!!
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment