Congratulations kids on taking your first steps in learning about money. You should focus energy on playing games, experimenting with new hobbies, exploring new and interesting things, making friends, learning the basics of life and enjoying the fun moments of childhood. Learning about money is most likely boring for you. However, there are a few lessons and a basic understanding about finances that can help you now and provide your future self with the building blocks for a happy and successful life. Take a look at some Parent letters teaching kids about money for some simple ideas that you should know before the training wheels come off. Financial literacy is more important than you realize now.
Teaching Kids About Money
How do you think your children would manage money if given the opportunity to earn income, pay expenses, and reap the rewards of a 20% compounding interest rate? My wife and I conducted a 20 week experiment and reviewed our kids decisions using the RoosterMoney app. Are you curious how my kids did and what can be learned from the exercise? I certainly was.
Relating the concept of financial independence (FI) to an activity a child understands is important. This is a letter to my son explaining how his video games are about money management and he doesn't even know it.
I want to share with you a life changing discovery that eluded me for decades. You can actually achieve financial independence rather simply with enough knowledge. Most parents don’t realize it or fail to pass along the methods to the next generation. Let’s fix that!