How To Educate Your Kids Financial Wise: The 4 Basic Principles.

    I recognize that teaching how our children should deal with money is controversial, as surely everyone agrees that it is essential, but at the same time, the way it should be done is not unanimous. Anyway, I believe that there are four basic principles that must be followed:

Principle # 1: Educate yourself financially You can't teach someone something you don't know. Learn as much as possible about budgeting, saving, investing, cutting expenses and managing debt.

Principle # 2: Be an example It is one thing for you to say what your children should do. However, if you are doing the opposite, they will certainly learn more through your actions than your words. To teach how to control spending, you also need to do the same. Guide them through good examples.

Principle # 3: Teach one habit at a time Your children will not become financial experts overnight ... Not even in a month ... or even in a year. Your goal should be to teach them these lessons throughout your childhood and adolescence. That way, teach them one thing at a time, until they have learned a certain skill, and only then move on to the next. There is no need to rush.

Principle # 4: Allow them to learn on their own. It is not possible to teach just by saying what should be done. You need to explain how it should be done (calmly, one thing at a time), then you must show it (teach by example) and, finally, you must allow them to put a certain habit into practice. Let them make mistakes. And then talk to them about these mistakes. Thus, they will learn very early because these mistakes are really mistakes. And if you do it right, they will learn much better habits on their own.


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