Three Financial Lessons to Teach Young Children

GRAND RAPIDS, Mich. - Oct. 9, 2014 - PRLog -- As a parent or grandparent, you'd like to pass down the lessons you've learned in life to your children or grandchildren. These lessons can include how to be financially responsible in order to meet your goals. Here are a few tips that can help you impart this important financial wisdom to your youngest family members.

Life Lesson No. 1: You Earn Money by Working
Don't just tell your children or grandchildren that money doesn't grow on trees – show them how people in your community are working hard to make a living. When you're out running errands, point out the drugstore cashier, the police officer and the bank teller, who are all contributing to society and earning money. Then take the opportunity to discuss how your children could earn money, whether through having a lemonade stand, doing chores around the house, etc.

Life Lesson No.2: If You Want Something, You May Have to Wait
This is a key concept to know in general. However, in terms of financial desires, this lesson applies to the importance of saving. A good first step is to make a list of a few items a child wants. As parents or grandparents, you can then help him or her prioritize and determine how much money he or she would have to save to make a purchase. You could consider using a piggy bank and dividing the money among three goals: saving, spending and donating. You can discuss that it might take time to build enough money to afford the items on their list because immediate needs may come first.

Life Lesson No.3: You Need to Make Choices about How to Spend Your Money
Some things in life are needs, others are wants. Going to the grocery store with your children is a great way to illustrate this lesson. Perhaps your family needs milk, but cookies are more of a want. You can talk to your children about using money to take care of their needs first. Then, whatever is left over can go toward the spending, saving and donating categories.

Imparting your financial wisdom to your children – whether they're young or grown – isn't easy. And it's probably only one part of the legacy you want to pass on. Contact Mark Grooters at (616) 281-9026 or email at mark.grooters@edwardjones.com today, as he or she can help ensure your specific wishes are followed in providing for your family.