Teaching your children about money
Mr Money Mustache is a light-hearted blog that gives advice on how to retire by the age of 30. Most people only start saving around this age, and can only comfortably – if at all – retire by 65. This means that it’s your responsibility to teach your children how to be financially savvy. Here’s how to secure your children’s financial future, paving their way to early retirement.
Be a financially savvy parent
As a parent, it’s your responsibility to be a bastion of money sensibility. If you set an example of wisely managing your money, your children will (hopefully) follow suit. This includes things like paying the full balance of your credit card off each month (and not just the minimum balance owed); not buying luxury items on credit and saving and wisely investing. This could mean growing a vegetable garden to save on grocery costs, or shopping at charity shops. In a consumerist culture, where money and luxury is associated with a higher status, it is difficult to be frugal, but teaching your children to be exactly that, and still enjoy life, is a priceless gift. Mr Money Mustache has excellent tips on how to be frugal and still enjoy life.
Know that the best things in life are free
Apart from a savings jar, children could also have separate spending and sharing jars. Some of their pocket money can be for spending on sweets and a movie, while some of it could be given to a charity, such as the SPCA. A saving jar is for the more expensive items.
Include your child in some financial decisions