“Dad, I need a car….” Those words open up a really important topic in today’s fast paced world. Every teenager can’t wait to turn sixteen and be able to get a learner’s permit, the first step toward automotive autonomy. But that’s only the beginning….
This blog will help parents and young adults understand their relationship with money and learn how to be financially free. This blog has nothing to do with accumulating wealth, but everything to do with helping young adults understand the value of money.
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Teenagers ask the darndest questions. As my son starts to figure out life and money, he has a ton of questions. “Am I Financially Dumb because I do not understand how to manage my money?”
Personal finance and understanding your relationship with money, on the surface, seems like common sense.
Being financially is probably the pinnacle of most peoples lives….but it has nothing to do with having lots of money. It is not an event.
What an awesome feeling it must be to achieve financial freedom. I wonder if you scream from the rooftops that you are financially free. How do you measure being financially free?
Unfortunately there is no measurement. There are no announcements. In fact, people who are financially free, don’t even know that they are. Weird!
There is no better feeling in the world than having succeeded at some large goal. That moment when you send in your last mortgage payment? Magic!
That day when you sign the papers to get your first book published? Unparalleled!
That day you managed that ten minute or eight minute or six minute mile? Incredible
I wouldn’t trade the feeling of achieving a large goal for virtually anything in the world. Almost every great moment in my life – save the birth of my children – was the culmination of a goal.
“Dad, what is money?” my four year old asked me as I picked him up from school on a cold winter afternoon. His question surprised me. Did his teacher mention “money” during class today or did one of his friends say something to him on the playground about money? I quickly distracted him and asked him about his day and what snack he wanted to eat.
His question got me thinking…
Being a parent is the most difficult job in the world.
It has been a long time since anyone believed you can tell a child to “Do as I say, don’t do as I do.” Modern experts agree that the best way to teach a child anything is by example. In spite of this, many parents fail to ”show” their children one of the most important lessons they’ll ever learn: how to deal with money responsibly.
I recently came across an article that argued – quite convincingly – that parents are poor financial role models for their kids. Here is a quote from the article:
“Most parents (77%) say they are not always honest with their kids about money; 15% lie weekly. Half are willing to discuss saving and spending issues but almost no one talks about tougher concepts like inflation (19%), investing (16%), diversification (11%), and asset allocation (8%). A third avoid talking about the family’s finances altogether.“
Lets break that down, piece by piece.