Things I Would Never Teach My Children About Money

I love to show my children the importance of financial management. But there are 4 things I would never teach them. Here’s what you can skip when it comes to informing your child about their financial choices. 

1. Dismiss the Importance of Financial Responsibility.
   The earlier children are taught about their financial responsibilities, the more likely they are to understand their importance. When talking to my children about finances, I never miss an opportunity to talk to them about the importance of paying on time, budgeting, saving, as well as the positive and negative consequences of these actions. 
   

2. Not Taking Appropriate Risks.
   Risk evaluation is a large part of financial management. For example, I would never teach my children to pay off low interest rate debt. This is because money inflates faster than the interest rate on that debt. Rather than stressing about paying off low interest debt, sometimes it’s better to find other places to put that money. 
   

3. Money as a Measure of Success.
   When you’re teaching children about financial literacy and money management, it’s important to separate money, self-worth, and success. Although money can help you achieve what you want, it isn’t the only way to measure your levels of success. 
   

4. Ignore the Importance of Saving and Budgeting
   One of the first things I teach my children about money is the concepts of saving and budgeting. Whether you choose to give your child an allowance or not, use your everyday life to teach your child about the importance of allocating money for your family’s needs and wants. 

However you decide to approach money with your children, make sure it’s centered on your values. Through this learning process, they get to learn about goal setting, critical thinking skills, and risk taking. Teaching children early about financial literacy early on gives them the ability to make informed decisions about money for the rest of their lives. 

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