Thursday, 22 September 2011

The Second Pillar: Spend Wisely

"Our necessities never equal our wants." Benjamin Franklin 

It's all about choice! Our children are bombarded daily with consumer products that seduce them into wanting all kinds of things. That goes for all of us, we know how hard it is to resist the temptations. After all, separating us from our money is what marketing is about. 

Teaching our children the difference between needs and wants and making choices about how to spend money, helps them develop an essential life skill and build self-confidence. 
Knowing how to make wise choices empowers our children. It teaches them how to:
  • Live within their means 
  • Avoid bad debt
  • Make a Money Plan
  • Think before they act

How to get them started

Have a conversation:  For young ones, encourage them to make a wish list and talk about what their top two choices would be for spending their money. Introduce the difference between needs and wants and listen to what they see are the differences, when it comes to their wish list. This can be very revealing! 

For teens, encourage them to spend only what they have. How? Don’t advance money until they demonstrate a firm grasp of the difference between needs and wants. 

For the young adults, talk to them about their spending. How it is working for them? What they they change and how?  

Share some of your life experience:  Tell them about some of the choices you've made. What you’ve learned are the differences between needs and wants. 

Remind them learning to spend wisely happens over time and experience is a powerful teacher.

"Life is the sum of all your choices." Albert Camus

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