What are you teaching your children about money?

11The first thing you learn when you become parents, is that certain words are should no longer be spoken. Beware of bad words, beware of curse words and even sarcastic criticism.

Children listen and record, they repeat your posture at the table and your tone of voice, your good and bad habits.

The famous expression is very true: “Monkey see, Monkey do”. It applies perfectly to children. It is also true in terms of money.
Stop here a moment and think. What are you teaching your children about money?

Which words do you use (do they hear from you that money is dirty?), How do you manage it, how do you use it? But above all, Do you talk about it?

In most families, money is a taboo. Some children ask their fathers, how much do you earn? You can see the adults around become paralyzed. It’s not good to talk about money.

Yet, money is the tool they will need in order to grow. It will be part of their lives, whatever it will be. So I ask you that question again: what are you teaching your children about money? I would like to get your opinion below on how you are managing the financial education of your children or on the education that you yourselves have received.

Change your life and your economic situation forever and gain Financial Freedom: download 2 chapters free of my book

Just the other day the results of the Pisa tests came out. It was a survey conducted on 15 years olds’ skills in the world in terms of financial education. What emerged is that our children do not know how an ATM works, do not know the difference between fixed and floating interest rates, they have no idea on how an investment works.

Is it their fault? No, simply Monkey see, monkey do. We cannot expect that our children are different from us. It is our responsibility to teach them how money works, through financial education

Change your life and your economic situation forever and gain Financial Freedom: download 2 chapters free of my book

Future generations will face at least 4 problems, and no one is speaking so far.

1) They will always be older. When I was born, in the 70s, a person at age 65 was considered an old person. Now the threshold seems to have shifted to be 75. With the technological progress and the constant increase of the average age, today’s children will be old perhaps at 95, growing old is expensive: Are they ready to face it?

2) Increase the national debt. Have you ever heard about Compound Interest? Albert Einstein called it the most powerful force of the universe. It applies, also in its reverse version, which is compound debt. The public debt has already led several European countries to social collapse, think about Greece. Will they be prepared not having state welfare?

3) Inflation. If Inflation will not be under control, the old advice of “find a good job and save money” will be wiped out. Will they be prepared?

4) The increase of taxes. Without a massive program of collective financial education, the system will have to support more and more costly activities to protect an increasingly large share of the population.

School does not prepare young people to understand how to produce income intelligently, working in a better way and not working more hours; ceasing to work for money (get a job), but making money in its proper place (investments).

Prepare them to face the world that awaits them, invest in your children’s financial education and on your own to allow your children to live the life they would want and the life they deserve to have.

To your financial freedom

Alfio Bardolla

Share with

Leave a Comment