Teaching kids money management from early stages is perhaps one of the most important priorities in their upbringing.
Time and time again, I find myself in a position where I would ask myself, “What if I knew how to manage money better, earlier?”. As an answer, the outcome would have been much different than it is today. Hailing from a working class family with parents stemming from those who had to endure the hardship of the second world war, it was apparent that the economic turnaround that started happening globally form the 80’s onwards has resulted in out-of-choise consumerism that was not always warranted by necessity.
Time and time again we hear of people pushing their credit limits and flaunting their high credit rating with banks. Just remember that whatever you borrow, you have to pay back. Money handed to you buy banks and credit institutions does not come for free, and more often than never, it comes with high interest rates.
Every generation seems to do its best to make up for their shortcomings as well as for the shortcomings of the generations before them by giving and doing more for the generation to come. Whilst this is a good thing, we should ensure that our bad habits are not passed on to our younger ones. We should ensure that they are thought the right principles and give them the right tools to not only succeed and become their best in what they love doing, but also give them the tools to navigate through life by eliminating one of the highest wieghed worries of all, Money!
It is not infrequent that I find myself speaking to friends on how long we have come in the last decade, and how much trouble money used to be for us when we were only embarking on our adult journey. We are now no longer living paycheck to paycheck, but looking at our main source of income and seeing also how to add further streams to that, and making money work for us passively.
There is no straight and simple formula here. One thing is for sure though, it is never too late to start. This is why teaching kids money management is to become our mission. They need to be equipped with all the knowledge possible in order to make the right decisions lin life and not get cripped in debt and without reserves when the rainy days come.