Why You Need To Teach Your Kids About Money
I knew nothing about financial literacy until I was 35, that would not be my children.
I knew nothing about financial literacy until I was 35 years old. I learned because I was deep in debt, I was sick and tired of being sick and tired and I knew I didn't want my kids to lead the same life I had lead to that point. Your kids will only learn financial literacy one way, that's you. You see, I was always under the belief that the schools should be teaching our kids about the financial side of life. Parents don't know, so who is going to teach them? The schools? There are some schools that do have curriculum's for this, but they are few and far between. My parents didn't teach me, coming out of high school I had no clue about anything to do with money. I couldn't tell you what an RRSP was, I couldn't tell you what an RESP was. I couldn't tell you much about stocks, mutual funds, index funds, life insurance etc, etc, etc. Can You?
I remember going to get my first loan for my first vehicle that I bought myself when I was about 22 years old. The lady at the bank asked me if I'd like to start an RRSP. I didn't even know what that was & really, at the time, I had no interest in starting one. Due to those financial items I just mentioned, I was always under the belief that these things should be taught in school to prepare us for adulthood and the real world.
The more and more I thought about it over the last couple of years, the more I realized that I don't really want our government creating a curriculum to place into a school system when our governments themselves can't keep their budgets in control. What it really comes down to is you, the parents, teaching your kids financial education. I know most of you would ask, if I don't know it, how do you expect me to teach my children? The simple answer is learn. Read a book or two, there are plenty, Make Your Kid A Money Genius (Even If You're Not) by Beth Kobliner, Smart Money Smart Kids by Dave Ramsey & Rachel Cruze. both are excellent teaching books.
"The lady at the bank asked if I wanted to start an RRSP, I didn't even know what that was. "
I learned my financial education by myself, I read books, I listened to podcasts, audio books, and watched videos. I had at one point in my life, not including my mortgage, over $100,000 in debt, One Hundred Thousand Dollars in consumer debt is nuts. Myself and my wife ended up paying off 50 K in 12 months which was the last of the $100,000 previously mentioned. As I said, you get to a point where enough is enough and you get sick and tired of being sick and tired. You just want to change, you need to change, you realize you have a family, you have kids, you need to be able to and want to be able to support them, leave them a legacy. You can't do that without financial literacy, when you're busy giving everybody else your hard earned money through vehicle payments and credit card payments, you cant win. You see, your income is your greatest path to wealth, and when you're money goes to paying credit card bills and vehicle payments every month, you're never going to build wealth.
This all comes down to the parents being able to teach their kids, to show there kids. We've already started teaching our kids st the age of 4 and 6 the difference between wants and needs. We can walk through a grocery store and my daughter will ask me, "Daddy, can we get these fruit or Fruit Rollups?" my response "you know, honey, we'd like to, but do you think that's a want or a need?" She knows right away that its a want. Its not the fact that we cant afford it or don't want to get it for her, its about teaching them, showing them "so that" they will become financially smart functioning adults, unlike myself. We do get "needs" sometime but its not something we "need" all the time. It is really, really important for you, the parents to learn financial literacy and learn the financial information required. Get smart yourselves, learn yourselves and then teach it to your kids so they're not in the same situation that you are in.