THE IMPORTANCE OF TEACHING CHILDREN ABOUT MONEY

Money is a very delegate substance to handle in the sense that it is part of our everyday lives money is more or less is the live blood of every economy in the world for buying and selling,ease of transaction, innovations, science and technology health it revolves every circuit of life, especially the aspect of personal finance,

Growing up as a kid I recall the basic three motives of holding money which includes

Speculative motives
Transactionary motives
Precautionary motives

When I was able to grasp the understanding of these coupled with the fact I got hold of the book RICHEST MAN IN BABYLON, RICH DAD POOR DAD. these books instantly changed my perception about money how it works, it's principles and how to get them in abundance, secrets to investments which is holding money in liquid form which also can be transformed easily, my understanding of the surest machanism of money through investment made me want to know more...and so my interest grew....

We live in a society were all these values are thrown into the trash can, especially the higher class citizen, who live lavishly throwing money around spending on whatever their heart desires, of course their kids are not left out of the plan, best schools money can afford, sophisticated room, great stuff, luxury at it's best for them personal driver, guard, house maid to handle most domestic chores , so the kids are just living on the best things money can buy, with no manners or values in them, little or no appreciation for these things, they were born with a massive golden spoon in their mouth experience nothing close what it means to work for money, and so they lavish and spend anyhow, because the true value and appreciation for money is lost, and anything that is on the excess will be abused and will lost it's worth.

Mind you it's very much okay to see your kids very happy by providing them with basics necessities that takes for a very comfortable living, for most of us coming from the other side of life were we might have experience a lot growing up so much that we wouldn't at any point wish our kids go through that same experience ever again.

Source

One of my friends did something really shocking, when his daughter was born he told me from her birthday till she turns 20 he has made a commitment to set aside a token amount each day to an account he created the day she was born and imagined how wealthy she will become when she turn 20, this is a very strategic plan on ground for his kids, and I know most parent also do same

Helping kids learn healthy money habit can take a lot of work, and require patience, from feeding their first piggy bank to helping devise a budget spending for college helps kids mentally develop a sound knowledge of how money works and also aids them appreciates the true value of money better

When you gifts them that pocket money, snack money or anything as a source of motivation when they accomplished certain task, make it a conscious effort too to get them their first piggy bank, the CONCIOUS intentional effort to put aside some portion of the money they get and not to spend everything at once on mediate self gratification,

TEACH THEM THE MULTIPLYING & COMPOUNDING EFFECTS OF MONEY
teaching your kids the multiplying and compounding effects of money set aside, which over time compounds into something so big you can't imagine having such funds in your hands at once, giving kids these motivation and motives to safe will really widen the scope of understanding about the concept of money, a token of money set aside today will compounds into something big in the short or long run depending on the targets set.

TEACH THEM TO DELAY MEDIATE SELF GRATIFICATION
There's a power that comes with holding so much money, everything your heart so desires you can probably get, teach your kids how to delay self gratification, teach them the clear difference between NEEDS and *WANTS" the difference between what is necessary and what is not, teach them to hold down some unnecessary things an go after those things that are needful at the moment others can come later

TEACH THEM THE MECHANISM OF MONEY
Somebody once said a penny that you worked for is far more better than a millionaire that is given you for free, teach your kids that there is dignity in labour, if they grasp the concept of how money works in the society and the economy at large they will become better at handling money than the average adults out. If your kids truly understand the system of how money works it makes them to be proactive and creative cause they will constantly be thinking about what to do to attracts money, at that point their minds are open to a lot of creative ideas.

TEACH THEM TO CREATE VALUE & BUILD SELF WORTH
Teach them that in these modern society the only way to stay relevant is to create something of value cause you can only get money when you exchange Something of value for money worth that value when this is done over time it boost your own self worth and self respect among their mates and helps them stand out anywere anytime and speak up so boldly and proudly of their accomplishments in life,

As parents we have a lot of huge responsibility to groom our children in the right paths by given them the rights knowledge and information about finances at a very young age...