A great present for your kids this Christmas – that will last forever!

December 7, 2012

Peter Cramer

Rather than set a bad example for your children this year and buy them whatever they want – and spend more than you can afford – why not start by giving them some ‘money smarts’?

You have the obligation to teach your children the value of money.

Some thoughts that you might like to ponder upon:

1. Money comes from working and if you don’t work, then maybe you won’t have the things you want. (Hint – put effort into study and work so that you have the best opportunity). I have found that the more effort you put in, the more things come your way.
2. Money doesn’t continually come from an ATM machine. You have to put it in there to be able to take it out.
3. Kids will follow you – they learn from you.  So if you put everything on a credit card – so will they. Maybe you can control yours – maybe they can’t?
4. Teach kids there is no free ride – teach them to pay for things they want – teach them to work for their allowance when young, pay rent and food costs when older and pay back loans for items that you agree are warranted.
5. If they must go to this or must have that – OK – they pay for it. Amazing how life’s “must haves” diminish if they have to work to pay for them!
6. Helping them buy a house? Teach them first to budget and do cash flows to see if they can afford it. Then maybe assist them dollar for dollar. Ie you give them $10k when they have save $10k (or some other multiple that requires effort).
7. Take them along with you to see the accountant – have your accountant talk to the kids about money and finance.
8. Get them to read a book about money – BUT FIRST you read one! They will learn from you…
9. Why don’t you prepare a budget for your annual planning – amazing how it helps. Then track monthly how you are going financially.  Involve the kids – they will learn from you…
10. Teach them to invest the first 10% (Without Exception) of whatever they receive,  earn or find! This is before food, clothing, credit cards, coffee, movies etc. Teach them that if they do that, they will be financially secure. Firstly of course, you need to do that so that they learn from you.
11. I promise you this – if your children do not provide for their own financial future – they will not have one! There are not enough taxpayers to fund the taxes to pay for our future needs – the Age Pension & Centrelink will be worth ‘nothing’ in 30-40 years!
12. And lastly tell them you love them often – that costs nothing!

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