“I wish I knew that at your age.” — said by every single older person out there.
What do you wish you knew as a child? Do you wish you could go back and share some wisdom with your younger self? I certainly do.
There are probably thousands of things that you wish you could go back in time and tell your 18-year old self. Sadly, time travel hasn't been invented yet (or has it?), so the best that we could strive for is try to help younger folks with their future.
I want those that I care about to have a better life than me. I want my future children to learn from my mistakes and my triumphs.
Below are the things I'm going to teach my children about money one day…
Making money isn't even half the battle. It's less than that. The real struggle lies in saving money. I've seen too many friends blow their paychecks on frivolous purchases.
These same friends turn out and blame the world for their problems because they're so frustrated with where they are in life. Saving money becomes a huge struggle.
You don't have to be frugal and budget daily, but I want my future kids to get into the habit of saving money. It doesn't matter if they do the “pay-yourself-first” strategy or the envelope system or any other strategy that they find. It's important to put some money aside for rainy days because there will be many thunderstorms in life.
Never be cheap with your friends.
You need to have honor. I truly believe that your network is your net worth. I've seen too many friends miss out on opportunities and lose out on friendships because they were cheap with their friends.
A few simple rules are: always be the first to go for the bill, never show up empty handed to a party, and pay all of your debts back.
Invest in knowledge.
Nobody in their 20s has an issue with getting drunk, buying new jeans, or attending a sporting event. Young folks always find money for partying and fun. Yet we can't invest in ourselves.
I'm going to show my kids the value of investing in all forms of knowledge. The benefits are infinite when it comes to investing in yourself.
You can do any of the following:
- Invest in education.
- Keep your mind sharp through reading.
- Go on trips to drastically alter your perspective.
- Take courses on the side.
- Be curious.
The best investment is in knowledge and my kids are going to know this from an early age.
Risks are always worth it.
I know that taking risks is scary because no guarantees are given. It's easy to take the safe route. It's easy as a parent to convince your child to go to college and take the traditional path.
I would like to see my future kids take risks with their time and money. The greatest lessons in life come from chasing bold goals and taking on huge risks.
I don't want my future kids to be reckless. I just want to see them take on bold risks.
Time is money.
This doesn't mean that you need to outsource everything. This means that you need to appreciate the value of time. Money comes and goes. Time goes and never returns. Once you waste an hour, that hour is gone forever.
Time needs to be treated with respect. You can't let time slip you by because you're going to regret it when you realize how much you could've done but didn't because you were squandering your time.
Another way that we all waste time is through buying things we can't afford and putting these purchases on our credit cards. You then have to spend valuable time working to pay off items that you already consumed.
I want my future children to value time.
Find a money system that works for you.
Everyone has their own unique set of core tenets and philosophies when it comes to money management. I'm not one to force views unto others. I will work with my kids to help them come up with their own money system.
Some folks are into extreme frugality lifestyles. Others work like mad to afford themselves the luxuries of life. Others have that perfect balance between life and money.
I want my kids to follow a system that's true to their goals and what they want out of life.
That's what I plan on teaching my future children about money. What do you plan on teaching your future children or your current kids about money? What lessons do you wish your parents shared with you? I would love to hear from you guys.