Let’s be honest. Sometimes, we just make money way too complicated.
Growing up, my parents did a great job of teaching me that managing money is based on one thing: common sense. Despite what you might hear, we all have it!
And the best thing you can do for your kids is to help them start putting their common sense into practice. You’ll do that by teaching them these basic principles of money management:
We talk about it all the time—the most powerful wealth-building tool is your income. That goes for both kids and adults. The 6-year-old you teach to save for a bicycle will eventually turn into a 17-year-old who is eager to save for college.
Pay commissions, not allowances. Your kids get commission for doing chores around the house, like taking out the trash, feeding the dog, and helping with the dishes. Instead of simply giving your kids money for breathing, give them money for being productive around the house! That’s how they’ll learn discipline and work ethic.
Priorities. Priorities. Priorities. Making money shouldn’t be a license to go spend it all right away. Too many kids and teenagers make $50 and spend it within a day on something they will have forgotten about a month from now.
As a parent, how can you make sure your child understands how fun it is to spend while also remembering how important our next subject is?