Financial Education I will be Teaching my Children

As a child I did not learn a lot of things I didn’t learn in school and these things got me disappointed. The knowledge gained about science or law could be very useful but one thing I which I could learn but didn’t learn is that of finance. I was never told how to calculate my money the way I was taught algebra and calculus. Every day I spend outside the school walls, I wonder why personal finance wasn’t added to my curriculum (well, I hope blockchain technology will be added into school curriculum soon else school could be regarded as a place for 60% knowledge). With this, I have decided to teach my child finance personally not bothering if he is taught in school or not.

CREDIT

What will I teach my children?

Home

Never buy a home you cannot pay for fully unless you want to use it for real estate. Home is never an asset unless it is bringing you money, it is a liability if you are living in it and so it should be considered one. Your home should only become as big as your spare cash.

Savings

Not everyone earns millions and inflation is always on the rise, so I will not teach my child to save only unless he is keeping an emergency money. Savings should be invested to generate revenue but never forget to save for emergencies.

Budgeting

I wondered why this lesson never came out during my school days but I will make sure my child learn about this at an early age. It is important to organize and differentiate needs from wants as well as be able to tell which is useful and which is not. The ability to budget properly helps to keep money and this increases the finance of a person.

Compound interest Investing

I will be willing to tell my child that you do not invest and watch it grow itself, you need to feed the investment on a regular basis to grow so it could bring in increased revenue.

Using Credit

As a parent, I will be ensuring that my wards never uses their credit for liabilities. If you will be using credit, you should use it to get assets, improve a business and so on. If you are using your credit for something that won’t bring a higher revenue to the interest then do not use it. Also, always ensure to pay back early so as to retain a good credit score.