Do This, and Your Kids will be Financially Fit!

Why do 70% of Americans live paycheck to paycheck? Why do most adults grow up with no money in savings but they have all the electronic toys, shoes and cars that one could want?

To answer those 2 questions, I have to ask one more (I'll even give the answer!) :
When you were a kid, what was the #1 reason you got money for?

Answer: To Spend!

Birthday money = Spend! Christmas money = Spend! Allowance= Spend! No wonder almost three quarters of the population could not survive financially if they missed just one paycheck! It's been instilled in our heads since childhood that the only reason for money is to spend with no thoughts of giving or saving! So here's a tip for parents, teachers and childcare providers to help raise financially fit children!

Whenever your child receives some money sit down with them and show them what they should do with their money. And then tell them why!

When I coach parents one on one or at seminars I show them that there are only 3 basic things we should do with money:

1. Give - Because it's not all about you. This keeps you from being selfish.
2. Save- Because saving is the foundation for wealth building. And you just never know!
   
3. Spend- Let's be real, spending is fun but you should do it wisely! Just spend after you give and save!
   

And you do them in that order! By doing this you will begin to ingrain in your child's mind that they don't just get money to spend, spend, spend! They will be tremendous givers and savers. You will have financially fit children entering the real world of financial responsibility!

What are some techniques you use to teach your kids the importance of being good stewards with their money?

Carlos Frank
Your Personal Financial Coach
www.nextmoneystep.com
www.nextmoneystep.blogspot.com