An interesting phenomena is happening in my house. Christmas lists are being created...usually a joyous occasion, my youngest two can not spell/write yet and so I have a series of pictures, scribbles and arrows letting me know what they actually are. Deciphering them requires a truly seasoned parent...
The phenomena is the influence of the older two on the younger two. While I still have pictures of a bow and arrow, race cars, and pokemon cards - I also have a square.
I ask Ben (my 5 year old) "What's that?"
He says nonchalantly "A Tablet."
"Why do you want that?" I ask.
"So I can play pokemon online"
The dialogue took 2 seconds. Ben did not see the confusion in my face, or all the questions whirling around in my head. Obviously a tablet is just a normal part of life for a 5 year old...at least in his brain. My younger two have been listening to the older two make their Christmas list and I am finding the cost of the items on the list are going way up. The list's are becoming increasingly complex, and expensive...
To be clear we are not going to buy our kids tablets or phones. However, my wife and I are realizing that our kids increased exposure to these things are highlighting our need to teach our kids a level of responsibility. In our elementary school, teachers have had to create policy not to have a phone in class. Seems pretty obvious. Apparently not obvious enough, the school actually had to create policy and communicate it.
So how do we teach our kids financial literacy?
crap...I dont even know what that means...
This unfortunately has been my wife and I's realization.
We have minimal financial literacy, because nobody ever taught us! Looking back to my education, it was all built around get a job. My parents taught me to be generous...and told me i should live on a budget...but thats about it. What are your financial habits? If we don't have any clear financial habits then how the heck are we going to teach our kids financial habits?
Our kids generation is becoming increasingly skilled and comfortable with technology. Their worldviews are being developed with an idea of instant immediate access to whatever they want #theinternet. We are not seeing a culturally disciplined, focused generation, being raised. With no financial literacy their ditch will be early debt, un needed use of credit, entitlement, and ultimately dependent on a bigger and bigger government.
No Thanks.
My wife and I are in full on learning mode. We are realizing our need to get on the same page as our kids are asking for gifts and technological devices into the hundreds of $$. We have lived on a budget but until just recently we have for the most part lived pay check to pay check, hoping that our house will appreciate it and help us get an upper hand financially.
One of the the things we have looked into adopting is living off 70%. Every month take 30%, save 10 give 10 and invest 10.
While we know very little about investing, and have nothing we are currently saving for we are trying to implement the discipline and include our children. To include them, we are giving them a monthly allowance at the rate of $1 per year per month. So my 9 year old gets $9/month. We have been allowing them to spend their 70% on whatever they want (cringing as the youngest still buys a hot wheel every time he sees one) after putting the other 30% away.
The oldest two are starting to understand their need to be responsible with their money. We have explained to them that we are not going to buy them tablets and phones, rather we want to teach them the responsibility to be able to not only afford that but to be responsible with that. As a result they are starting to save money and say no to trivial toys at the store, in order to purchase something in the future. On top of that, they are starting to ask the question how can I get more money.
I found that the bulk of my education was about getting a 'good' job. That basically means, make enough money so that you can be 'happy', pay taxes, and ultimately build someone else's dream. No thanks to that as well.
I tend to believe that each of my 4 kids as the potential to make a mark on history that impacts eternity. One of my favorite quotes is from Winston Churchill - it says
"History will be kind to me, for I intend to write it"
I want my kids not to grow up with an worldview of entitlement and dependency on a job, rather with the ability and courage to tap into dreams, desires and ideas to contribute to society. Now all these things will cost money. So financial habits to make money are crucial in these little brains.
Look to empower your kids to make money. Obviously, this needs to be age appropriate, and dependent on where you live. A few of the ventures that are starting to take off in our family are dog dookie pick up and dog walking. My wife and I have not done it for them, but are looking to encourage them and support them in knocking on neighbors doors looking for work.
I believe that is the ditch for this generation. It's what they understand watching parents pay with credit cards, watching people use their phones at all hours of the day. They are expecting ease of access. Teach them to work. To go outside and knock on a neighbors door is torture the first time, it requires effort which is new to most of this generation. I charge my 7 year old a quarter for every pile of poop he misses, the first time I took a $1.50 from his paycheck was like I was pulling his teeth out. He is a little more thorough now (he has also conned is 3 yo brother to help him find the poop - on a volunteer basis).
This has been a very embarrassing process. Realizing as a parent how little I know about financial literacy is a bummer. However, things are taking off financially and my wife and I are including our kids. It is our job, and I am 100% sure that our education system is only going to sit on their dreams and desires and teach them to get a 'good' job. Most kids learn about finances as they are signing paperwork for thousands of $$ of student debt when they turn 18. What if our kids where signing paperwork to buy their first house when they turned 18 and using it to pay for college...
Parents lets do it - and if you have any financial literacy tips you have used as parents I would love to hear them...
Live big today and Dominate Life!
