5 Pieces of Advice to Tell Your Child About Money is a series that will run every Tuesday for the next few weeks where some of the top personal finance bloggers share their thoughts on this topic. At the end of the series I will post my own 5 pieces of advice. The entire series can be found under Money Tips.
One of the things that I am really passionate about is setting a good example for the next generation. It seems that so many kids these days have no idea about personal finance and have not been taught the skills on how to manage money for the future. Many of them don’t have to work hard for what they have and so they haven’t developed an appreciation and respect for money earned.
This week, Flexo at Consumerism Commentary shares his thoughts on this matter. Here is what he had to say:
1. Money is not a goal. When you set goals, think about the positive change in the world you want to make or how you want to affect the people around you. Only then can you start to think about how you can earn money and be financially secure to reach those goals. Financial security or retiring with a certain amount in your bank account is not a goal, but it may help you reach your real goals.
2. Money is neither good nor evil. Money is simply a tool, and like any tool, it can be used for either good or evil purposes.
3. If you are in a position to help, you have an obligation to help.
4. Pay attention to your money. The only person who is going to look out for your financial situation is you. Your boss will limit your income. Banks and financial professionals want to take your money away. Companies want you to spend your money.
5. Save as much as you can for later and avoid borrowing money.
Thank you Flexo for participating in this series and for sharing such valuable insight!
Teach your children: Make sure to use coupons to buy the things that you need or want, and to spend the money you save on other things that you want.