While school is essential to a child’s education, we parents teach most of the really important life lessons, including those about personal finance.
A New York City dad is getting praise from around the world for how he’s teaching his kids about the importance of saving and giving. In a post on the popular Humans of New York blog, a young boy explained that his father gives him an allowance of $1 per week. The boy is then required to put the dollar in one of four buckets, “save,” “spend,” “donate” and “invest.” If the son puts his dollar in “invest,” his parents give him 2 cents at the end of the month. The boy says he has “way over $10” in his investing bucket.
This story has received 700,000 Facebook likes and been shared about 80,000 times. While social media commenters praise the dad for teaching the lesson of saving; what really broke the internet was the little boy’s observation that he has pulled some money out of his bucket to share with “people who don’t have enough money in their spend section.”
How are you teaching your kids about money? You don’t want them picking this stuff up on the street, you know. It’s never too early to start teaching them about the purpose of money and the importance of savings. First graders in my local school system are already learning basic economics, including the difference between wants and needs. What a great time to start teaching them about budgeting and investing.
Of course, you are already teaching your kids about money every single day in countless ways. Kids are incredibly observant – and absorbent. There is a very good chance that as adults they will have the same financial attitudes and habits (good and/or bad) they observed in their childhood home.
One more reason for all of us to make sure we have our financial houses in order.