Despite where I am today, my family struggled financially growing up because my mother didn’t understand money. For that reason, I am passionate about teaching kids financial literacy on a grand scale. But, I can only do so much on my own…
So, I wrote this article to show all of you how to empower the young people in your life to have financial security. Below, I outline my tips to introduce these concepts on a gradient.
It’s Not to “Stress Out” Children, It’s to Educate Them
Before we get into the “how-to” part of this article, I want to reinforce the importance of these lessons. And, I want to address a concern that many parents and role models have…
They don’t want to want to worry kids by discussing money with them.
Yet, how stressed do you think they’ll be if they become adults and have learned the wrong things about money?
With that in mind, I’ll show you step-by-step how to set them up for success.
Introducing Kids to Financial Literacy
A huge aspect of raising confident young men and women is teaching them life skills.
That responsibility does not belong to whatever school they are enrolled in. It is yours.
Additionally, it is an unfortunate fact that our current education system doesn’t teach kids financial literacy effectively — if they do it at all.
Therefore the task is ours. That being said, it isn’t necessarily a tough job either just build upon each principle like this…
Introduce Money as a Tool
I think many people struggle financially because of the way they view money. I’m talking about limiting beliefs like…
“Money is the root of all evil.”
“Rich people are greedy/selfish.”
“Money changes people.”
THOSE NEGATIVE VIEWPOINTS ARE NO WAY TO INSTILL A STRONG, HEALTHY RELATIONSHIP WITH FINANCES!
Instead, begin your kids’ financial literacy journey with the strong understanding that cash is a tool.
No need to attach emotions to it. It is the way we represent exchange for the things we need.
Exchange is extremely important when it comes to a good relationship with money. This is why you should implement this next tip…
Don’t Give Kids an “Allowance”
Now, when I say to not give children an allowance, I am not saying that you should never give them money…
IN CONTRAST, YOU SHOULD HAVE YOUNG PEOPLE EARN ANYTHING YOU PAY THEM EITHER THROUGH WORK OR HITTING TARGETS.
I have been doing this with my daughters from a very young age.
This practice accomplishes a couple of things.
- Demonstrates value behind the currency.
- Give the kids ownership of the received money.
Then, a part of that ownership is giving up enough control for the child to make decisions about it.
Let Them Make Mistakes
Whether you are a kid or an adult, a large portion of financial literacy comes from experience. That means learning how you felt when you made a disappointing purchase.
Nevertheless, we can help create an environment where these “bad judgments” can be made on a small scale.
At those times, mistakes can be learning moments and set up further lessons. For example, tools to prioritize purchases or not buying on impulse.
From there, their understanding of money can keep going as much as you’re willing to nurture it.
But, like any other subject, you gotta put in the work — and in this case, the sooner the better…
Why Start Kids’ Need Financial Literacy Education NOW
At this point, I hope you already have an idea why talking to children about finances is important.
However, this post I made regarding my experience with my girls says it all…
Ultimately, education is meant to prepare kids to build the world of the future — financial literacy is part of that.
Let’s help them be great.
— Grant Cardone
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
