10 Money Principles Kids Should Learn1:15 PM
Aside from aiming for a good education for our children, I believe that we also ought to teach them how to handle their finances this early. We're not going to be with for them forever, won't we? So it's just wise for our kids to be money smart, too!
Below are the 10 money principles that your kids should learn:
- Financial freedom is your choice! There's no age too early for financial literacy. We should also teach our kids this fact that they can be financially free if they choose to.
- Creating financial freedom is a matter of developing right habits. Develop and establish your kids' financial habits early on in life. As parents, we should also model how to have sound financial habits for our kids to imitate.
- Pay yourself first. Teach your kids how to invest and have their money work for them.
- It's better to tell your money where to go than ask where it went. Teach them how to budget their money wisely.
- Assets feed you; liabilities eat you. Kids should know what's the difference between the two and they should also see in us parents that we have more assets than liabilities.
- Don't put all your financial eggs into one basket. The three pillars of wealth are stocks, real estate, and business. We are blessed to currently have all our money invested in these and I know my son realizes the advantage of diversifying our investments.
- Save early and save often. Have your kids appreciate the magic of compound growth brought about by compound interest. Help your kids invest their money in mutual funds!
- It's not how much money you make that's important. It's about learning to better manage and invest your money that you already have that matters most.
- Money is a tool to reach your dreams. Money not only helps you become secure and financially free but it also helps you to help others.
- Make money grow by putting it to work for you. Passive income is the bomb! How to achieve this? Invest in sound and legal investments and watch it grow overtime.
Thanks to MoneyMax.ph for this infographic!
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