The area of financial management is one of the most critical aspects for a successful and well-lived life, but sadly, it is one of the most neglected things especially to the millennials.
The numbers don’t lie. A survey revealed that most young millennials (18 – 24 years old) had less than 1,000 in their savings accounts. Worse, almost half of young millennials had zero dollar saved. Investing? Don’t bother talking about it when saving up is not in their vocabulary.
The above calls for a serious discussion on money management.
We seldom see parents and guardians discussing how to manage wealth and resources to their kids properly, and when they finally grow up and they decide to teach them, it has become too difficult or simply impossible. It’s because financial management is all about mindset.
That said, parents need to teach proper education regarding finances to children, such as how to use credit and debit cards for kids. Here’s why you should probably teach them:
1. It is always wise to start at a young age
The older our children are, the less teachable they become. Somehow, they reach a point where you can no longer teach them, especially if you failed to allow them to develop healthy financial habits from their young, innocent years. But young as they are and they develop and become financially wise, they will carry that habit as they age in life.
2. It highlights the importance of finances to them
The common trend nowadays is that people do whatever makes them happy for that day, spending all they want on shopping sprees and online stores, only to find their wallet empty a few days after payday. Thus, they resort to debts just to sustain their lifestyle.
By teaching kids some financial education, you are actually inculcating into their young mind and hearts that money is essential and should not be spent mindlessly.
3. It ensures their independence and security someday
Someday when time passes by, and you are no longer there to guide them, your principles about financial matters will be in their hearts, and they will treasure their learnings to become financially independent and secure. They will not waste all their money in one sitting and actually learn to invest or have savings in case of financial emergencies.
Financial education should be highlighted early in the childhood, as it’s a foundation kids build their money mindset for the future. Money management is a habit, as we know it, so introducing it early on is only beneficial for them.