Money Lessons Your Parents Never Taught You

Money Lessons Your Parents Never Taught You

Trips to the bank, store, or ATM machine can be a great way to start a conversation with your children about money and finance. As adults, money is one of the leading sources of anxiety, but one of the few things we neglect to teach our children is the subject of financial literacy, and unfortunately, also at most schools, financial literacy is not a big deal in curriculums. It has hugely been neglected.

So, where should we begin? It’s easy to be intimidated by the prospect of teaching financial literacy. Simply hearing the phrase “financial literacy” conjures up thoughts of difficult arithmetic, charts, and lengthy lectures. The good news is that it doesn’t have to be tough to educate financial literacy.

In fact, the most significant lessons don’t even necessitate the use of math. Below are two lessons that will have a significant impact on your children’s future happiness and wealth. They’re so easy to learn that even a child can do learn them.

Happy family on the couch reading storybook Premium Photo

Lesson 1: The Value of Money

Getting started with this lesson couldn’t be simpler. Simply inform your children about the costs of various items. Tell them how much the dinner cost you or how much their clothes cost. You can tell them how much you make and how much you spent on your house and car when they get older.

When your kids are young and don’t comprehend money, using chocolate bars to convey value is a brilliant method. You may tell them, for example, that the teddy bear they desire costs fifteen chocolate bars.

Understanding the worth of money is the first step toward breaking the cycle of mindless consumption and realising what matters most to us.

Lesson 2: Have a Savings

In the early years, time seems to flow more slowly, and you assume you have all the time in the world. However, before you know it, you’re burdened with a house bills and other expenses, as well as a spouse and children.

I wish my parents had instilled in me the value of saving money from a young age. That it becomes more difficult as you get older, so start early.

Saving money with discipline keeps you motivated and helps you achieve your financial objectives faster. You don’t have to worry about how to pay your bills or what will happen if you lose your job if you have savings in the bank. You’re committed to steadily increasing your savings so that you can achieve your dreams sooner!

So begin saving as soon as possible!

Lesson 3: Have a Budget

So, this one took me a long time to figure out. I don’t recall my parents ever discussing money together. There were no budget meetings or conversations about how they would pay for a new car at the kitchen table. Everything operated like a well-oiled machine, and the money was always there.

I don’t think I even knew how to budget until I was in my early twenties. Don’t wait another day if you don’t have a budget! To get better control over your finances, make a spending plan on paper. It’s one of the most effective ways to move closer to financial independence and freedom.

Lesson 4: Live Below your Means

Living off 100% (or more) of your income is basically living paycheck to paycheck.

It’s also difficult to shift course once you’ve started down that path.

I wish I had known the importance and wisdom of setting financial limits when I was younger. Not only to avoid overspending but also to be satisfied with less than I could afford.

However, all any of us can do is begin where we are. We can’t change what happened in the past, and we can’t predict what will happen in the future.  So I try to make wiser decisions every day, even if it means making some sacrifices. The good news is that if I live on less money today, I’ll have more money tomorrow.