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.
“My parents think we should buy a house, but I don’t think our finances are ready for that.” “My grandfather says that only fools invest in the stock market.”
“Uncle Steve invests a lot of his money in gold and pretty much insists that we should all be doing the same.”
“My brothers say that buying a car that’s less than five years old is a waste of money.”
Family members and loved ones can be incredibly compelling. We trust them. We love them. We value their input. Sometimes, they frustrate us with their input, but we know that it’s usually brought about by love and concern.
“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…
Here are some things that inspired and motivated me this past week. Hopefully, they will inspire and motivate you to also achieve your goals.
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.