How to Guide Kids on Financial Related Issues.

Hi friends, hope you are having the experience of a great week? It has been stressful over here but we keep pushing and hoping for the best continually. This morning, I woke up with a reflection on some of the questions children ask and the great responsibilities of parents to guide these kids properly, reflecting on the fact that I may have kids of my own soon, I saw the need to study and understand how to guide kids rightly especially when it comes to financial issues and topics.

The financial knowledge and success of a child are greatly dependent on the upbringing the child has. This is not to dispute the fact that, some children grow up to change their own paths, we can however not disregard how important it is to bring up kids with good financial knowledge as this aids their journey and helps them make better financial decisions.

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Wealthy people are known to pass wealth from one generation to another because the kids born into wealthy homes are usually trained on the importance of money and how to constantly grow it. There are very simple and important laws of wealth growth that kids from wealthy homes are trained with at first hand.

Kids should be taught the difference between assets and liabilities.

Children should be trained on the importance of asset acquisition, when the assets are acquired and grown to bring in profit then liabilities can be purchased from them. If on the other hand, liabilities are purchased first, it will constantly require maintenance which will stand as a regular financial rip-off to the person who purchased it.
One of the big mistakes made by young people is the thirst to appear rich with the things they wear even if they return home to piled up bills and debts. Looking towards a profitable future is to focus on gathering assets instead of liabilities.

Kids should be taught the best way to handle expenses.

In a poor home, there is usually a lot of complaints and murmurings from parents whenever there is a bill to pay, this makes children feel life is extremely difficult and unbearable. Kids should, however, be taught that expenses are normal and basic necessities of life, we only have to work towards leaving within our means and then looking for extra income sources (If necessary), to help us sort out our daily expenses.

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Consistent productive effort.

Kids need to be trained on the great need of being productive, trying an act once is not good enough but putting in the regular and consistent effort is what eventually brings productivity. Kids should be taught the importance of smart work, being calculative on every activity they carry out, and using generated funds in a productive manner.

Conclusion.

I consider parenting as a very serious business since the future of innocent kids has a lot to do with the manner of training and guidance provided to them by their parents. Parents must carefully consider teaching and guiding their kids on proper finance and the appropriate ways to go about it.