The pursuit to help the next generation understand financial literacy just got even sweeter. The conversation and implementation of financial principles and tools to help us train our children must continue to be priority number one always!
As Americans try to spend less and go on a budget this provides an opportunity to teach the next generation financial principles they may never have seen in the prosperous years they have been alive. Here at Diverse Legacies, we would never tell a parent how to lead their children in the area of financial literacy. Our position is to educate the parents on the tools available that will make it easier and effective for your children to learn. With that being said, we do provide several principles for teaching children about money:
1. Talk about money. Every time money is involved, parents have a chance to teach their children the values and analysis behind their actions. Money should never be the primarily topic of discussion, but it is one of the most important topics through which we communicate our wisdom and values to our children. Every purchase, investment, or donation can be a time to teach your children something about your financial values.
2. Talk openly about money. Parents make a mistake when they keep information from their children. The only way children learn what is a good deal and what is too expensive is by the experience of what their family earns and what items cost. Hiding this information robs children of the financial education they need. Do not let that be your story.
3. Talk factually about money. Many parents have strong emotions about money based on their childhood experiences. These emotions are always transmitted to children. Instead of helping children, they can cripple children from growing to make sound financial decisions. This could hurt your precious children in so many ways.
5. Provide children an allowance they can make real choices with. Talk about how money is super important, but also children need real-world experience to understand the consequences of their decisions. Children need true boots on the ground training. Consider giving them an allowance large enough so that they can purchase some of their own needs. Then continue to give them honest advice, and help them ask the right questions to make wise decisions based on their values.
6. Help children prioritize purchases. Ask them if this purchase is better than other purchases they are considering making. It is good to develop critical thinking in the area of financial literacy.
Here is a tool that Diverse Legacies will expose our clients to for their children. It is a game changer. This financial literacy product is called “Greenlight Card.” There motto is awesome: “Made For Kids, Built By Parents.” If you would like learn more about this amazing tool, please visit here.
For quick insight, check the video below! Remember, children have the right to learn financial principles early.