Why it is Important to Teach Your Kids About Money

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Photo by Joshua Hoehne on Unsplash

Education is more important today than at any other time in history. As we leave the Industrial Age behind and enter the Information Age, the value of one’s education continues to increase. – Robert T. Kiyosaki & Sharon L. Lechter

This is also true even on matters on finances. There has always been a need for financial education. But, our day and age, has been found lacking in this area. In our schools, almost nothing is taught around how money works.

Do your kids understand how money works? Do they earn an allowance for doing chores around the house? Do they baby-sit to earn a few extra bucks? Do you take them to your office during school breaks so they see what it’s like to work a ‘real’ job?

Do they know the fundamentals about saving? Do they understand how to figure out which is the best deal? Do you set a good example for them about handling money?

First of all, make it your business to give them well-grounded education about money. You don’t have to be all academic about. Just teach them about what money is. Yes. Talk to them about its significance. Teach them how it works.

It’s so important for kids, especially teenagers, to understand the concept of money and how it flows in and out of your hands throughout your lifetime. How to save it and how to spend it. Why is it important to give some back to others through charitable donations. If you don’t develop an understanding of money early in life, how can you possibly be able to manage it later on?

Parents have a responsibility to make sure their kids understand how money works before they go into the world to earn that first paycheck. Having this knowledge gives them the confidence to make smart money decisions as they navigate their way in life.

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Teboho is a Social Worker, Writer and Inspirational Speaker. He is in pursuit of MSc. in Managerial Psychology. Graduates are able to apply psychological principles and methods to tackle challenges in the work environment and provide effective practical solutions. Acting as industrial-organizational psychologists.