I’m really excited to be able to share a guest post with you some words of parenting and financial wisdom by my friend and fellow writer Angie Mohr. Angie’s book, ‘Piggy Banks to Paychecks’ is being published by Fitzhenry & Whiteside and hits the shelves later this month. She offered to stop by and offer some words of wisdom to my blog readers about parenting and how kids learn their first (and most important) financial lessons at home! Please read along. If you’re interested in learning more, you can also follow the ‘Piggy Banks to Paychecks’ FB page!
I have been graciously invited by Kelly to write a guest post on her blog today. Thanks, Kelly!
I would like to talk a little bit today about why it’s so important that parents take control of their children’s financial education. Many parents feel that it is something best taught by the school system. Unfortunately, it is rarely taught in most curricula in either public or private school and most children leave high school woefully unprepared for the financial life ahead of them. This leaves them vulnerable to digging themselves into serious debt without a plan on how to get out.
Without your guidance or formal lessons, kids are left to their own devices to pick up information about how money works. They usually absorb their beliefs about money through television, the playground, and what they think that you are doing with your money. Your financial habits impact how your kids learn money skills. Are you a feast or famine family? Spend it when you have it and do without when you don’t? Your kids may learn that money is in the driver’s seat and they can only react to their fortunes or lack thereof. Are you a careful budgeter, always ensuring that your purchases are planned and accounted for? Your kids will learn to organize their financial lives and plan for the future.
You don’t have to be a financial expert or have done everything perfectly in your life to be able to show your kids important money skills. Don’t be afraid to open up to your children about the family’s financial situation and budget. This gives kids a hands-on look at how a real family operates and the financial challenges it faces. Don’t worry about disappointing your kids with how little income the family has or how large the expenses are. Show them how you are managing on what you have.
There isn’t a more important skill you could pass on to your kids!
© Angie Mohr 2012