A Small Leak Will Sink A Great Ship Get Money Confident Today
If you found yourself in a financial bind and you had till the end of the business day, are you financially prepared to fix it? If you said yes, kudos to you! Personally, I am not. Yes, I grew up watching my mom going to the bank to pay bills the old traditional way (as a millennial I can say that about money). During my young-adult days, I made quite a few financial mistakes as I am sure many of you have too. However, I made a promise to myself that I would educate my kids — especially my teenager — so that she and her younger siblings don’t follow in my footsteps.
As a wife I am relieved that my husband has a way better sense of financial literacy when it comes to spending, saving and investing our money to make sure that we have financial freedom as the years go by.
Growing up, the saying “money doesn’t grow on trees” was something I heard on a regular basis in my house. Two decades later I find myself as an adult uttering the same five words to my kids. The economy that we live in today is by no means easy. However, most of our salaries have either stayed the same or the positions we hold no longer exist because of restructuring. Go Figure!
Money says one thing: “Save me today and I’ll save you tomorrow!”
Financial freedom is a dream for some, but it can come true. It’s something that everyone wants at some point in their lives whether they are young with no children wanting to travel freely, to they are more mature preparing to retire and enjoy adulthood stress free. Those are all goals that are attainable in my opinion, but we have to be diligent with the way we spend and save our money.
I got my first job when I was 16. I can remember the long lists of what I wanted to buy with the first paycheque I had earned on my own.
Little did I know my mom had other plans for me. At a young age my Mom had taught us about the importance of saving money. She was a single parent and I knew early that every penny needed to be accounted for to ensure my siblings and I were fed, bills paid and money was in the savings account for a rainy day. So why years later did I make mistakes with my money? Trust me, the thought constantly crosses my mind.
I can’t take back the past, I can only make it better by teaching my kids about the importance of money and how to handle it properly, so that when they become adults they are prepared financially with the life skills we have taught them. Now that my daughter is at the age where she can learn responsible ways of handling money, we started letting her see how much the bills are, what income we bring in to the home, other expenses, and how important it is to budget and pay bills on time.
We have even gone as far as to let her do some of the day-to-day banking that we do. Needless to say she has stressed that she is not ready for “adulting”. One of the first and easiest ways we started teaching her about saving money was through chores.
It’s not about how much money you make,
it’s about how you save it!
Since chores are technically the first job that kids have — and the first job they are eager to do to get spending money — my husband and I felt that this was the best way we could test our daughter with her own income to see how mindful she was. We provided her with a start time, chores, and a detailed to-do list that had to be done in order to receive payment.
Then we took her to the bank to open a student account, which we still had control over. The adviser stressed the importance of financial education, with day-to-day banking. My daughter now deposits her earnings from her chores and has a daily spending cap that forces her to learn the difference between wants and needs, and she practices using the information the financial advisor provided her with. She quickly realized that saving money was far more rewarding that earning it.
I believe that an essential step to understanding money is knowing the importance of saving it. My daughter has reached an age where she is starting to see how fast money burns and the trouble that can lead to. With that being said, understanding the money flow of your expenses and writing everything down is important. It gives you a visual, which in turn makes you more conscious of your spending.
As I had said before, I made a few financial mistakes along the way. I wish I had the tools that are available today to make me more financially confident about how I spend money. It makes it much easier to teach our kids lessons without overwhelming them. One tool that we use is a One tool that we use is a Money Fun activity book. It’s fun for the younger ones, and they are learning a lot from it without it being obvious. Along with that another great tool for adults is simply visiting a TD website under Financial Conversations . You can choose who you want to have a conversation with and then you are able to see many tips and information pieces geared to where you are, or want to be in life. It’s never too early to educate the young ones or too late for adults like myself for the future. As the years go on, it only becomes more difficult to make decisions that can impact your life tremendously.
How are you preparing your children to be mindful with their money? I read a few statistics that completely shocked me. Did you know that more families speak to their children about sex than they do about money management? When I really thought about it, I could see why. It’s not one of those subjects that generationally come up in conversation in the household. But with the knowledge I have gained I can share it with my children and take peace in knowing they are well equipped for the real world.
Disclosure: This post is part of the YummyMummyClub.ca and TD #FinanciallyFit sponsored program. I received compensation as a thank you for my participation. This post reflects my personal opinion about the information provided by the sponsors.