Since an early age, I always taught my kids about finances. They knew that there are things that are wants and needs. Needs always take first priority, while wants have to wait because let's face it-they usually change. As they get older, I see that I didn't waste my time. There is nothing more fulfilling! It is very important to teach children about saving, spending, investing and creating wealth.
About three years ago, I taught my oldest about investing with sharebuilder. I knew that since he was making his own money in the Navy and he didn't have many expenses, he may find himself blowing it all hanging with the sailors. He took an interest and even made $12,000. literally overnight! He is now 21 and is in the process of buying his own home. Not bad, huh?
The Diva is a senior now. She started competing for and winning college scholarships her junior year. She knew that she was going to need a lot of money since the college she wants to attend to get her environmental engineering degree is pretty pricey. In the meantime, she has saved every penny she could. She shops at the Salvation Army for any clothing she may need. She is focused on her goal. If only we could all be so driven..
The other day I was talking to The Entreprenuer and he was telling me how he found something out about this "wealthy" family in his school. He was shocked and couldn't understand why anyone would live above their means. Their teen drives a Hummer, just one of their many cars. The teen daughter has a collection of Coach, the latest tech toys and their always vacationing. Apparently, they can't afford their lifestlye. They are in a really bad place financially, but they don't want anyone to know. One of their daughter's friends overhead their mom's conversation. If they thought no one was going to find out, they were wrong. Why hide it and continue bad spending habits for the whole family? That is a teaching moment if I ever saw one.
Don't you agree that as parents we need to teach kids that being financially responsible is important for everyone because it effects more than one person? It effects the family, the neighborhood and even the entire community. Seriously, fiscal irresponsibility by our government has effected our nation as well as our global community.
Do you teach your children about personal finance? Why or why not? How old do you start and why?