Youngsters learn early the cliche' "money makes the world go round" and yet have very little sense when it comes to earning and exercising responsible stewardship over their monetary resources.
This is primarily rooted in the fact that parents fail miserably when it comes to teaching children the difference between a debit and credit.
Most parents I know simply choose to avoid the money discussion altogether mainly because they have little understanding themselves in the area of money management.
Parents are merely youngsters in adult bodies who had not been properly taught how to effectively use money as a tool.
During times when money is plentiful parents typically dole it out unmindful of the unspoken lessons being conveyed.
However, it's especially when economics are leaner that bank balances are scrutinized more closely and parents remember they still have the word "No" in their vocabulary.
This is when the lessons of money management are generally taught or discussed.
The lesson here is simply "There isn't enough to spare" -- new jeans, sneakers or those unexpected events just have to wait.
It is unfortunate for young people not to have the proper training they need in the area of money management.
There are four lessons I believe every parent ought to teach their children about money whether during plentiful times or scarce:
This is primarily rooted in the fact that parents fail miserably when it comes to teaching children the difference between a debit and credit.
Most parents I know simply choose to avoid the money discussion altogether mainly because they have little understanding themselves in the area of money management.
Parents are merely youngsters in adult bodies who had not been properly taught how to effectively use money as a tool.
During times when money is plentiful parents typically dole it out unmindful of the unspoken lessons being conveyed.
However, it's especially when economics are leaner that bank balances are scrutinized more closely and parents remember they still have the word "No" in their vocabulary.
This is when the lessons of money management are generally taught or discussed.
The lesson here is simply "There isn't enough to spare" -- new jeans, sneakers or those unexpected events just have to wait.
It is unfortunate for young people not to have the proper training they need in the area of money management.
There are four lessons I believe every parent ought to teach their children about money whether during plentiful times or scarce:
- Practice saving at least 10% from their allowance, birthday or gift money
- Use their 10% to buy wholesale and go into business selling drinks or chips to friends
- Buy those jeans and sneakers only when they go on sale or with discount coupons
- Organize their friends and teach them how to use these money management lessons