All those hours you spent slaving in the office will be in vain if your children burn through the assets you leave them while your ashes are still warm. Taking the time to teach your children about money while you were alive can help ensure what you leave outlasts you.
How can I teach my children about money?
Here are some of the vital lessons you should teach your children about money:
- Lenders are not your friends: As your children become adults, they will become targets for banks and credit card companies. These institutions purposefully target young people hoping to lure them into debt for life. Things such as 0% interest credit cards may seem like free money, but there is always a catch. Educate your child on the real motivations behind these lenders’ supposed benevolence.
- Money doesn’t grow on trees: If you always buy everything for your children, they might not grasp the value of money. Encourage them to get Saturday or holiday work, so they understand what you sacrifice for every dollar.
- Track what you spend: It is easy to spend without knowing where the money goes. Encourage your children to note their spending in a spreadsheet. It allows them to spot areas of excess and budget for the future.
- Save before you spend: Many people only save if they have money left at the end of the month. By having them set aside a portion of any funds they receive, you encourage good future habits.
It is never too early or late to start teaching your children about money. Doing so increases the chances they use property you leave them wisely. Consider using a trust to protect assets for them if you are unconvinced about their financial acumen.