What Are My Advice To Our Kids About Money?

I just read recently an article about advices on people in their 20's on what they should do financially. This inspire me to remember the past, and what I recall is that I really don't do much about money and finance in those time. In fact, when I got my first pay money in my first job before, I rush to a mall to buy a new cellphone. Just like me before and the many youth of today who already earning money, what they are thinking is that money is only here to spend.

The lack of advice regarding money or financial education plus the bandwagon of consumerism is what the youth is facing nowadays. I don't have the financial mindset I have today, before when I'm in my 20's. What I only know in that time, is to spend the money I had and enjoyed life.

Nowadays I'm still building the wealth I want, not for me but for my kids. I know the fact that if I only starts building wealth at a young age maybe I'm billionaire now! 😂

Because past can't be changed, what I can only do now is to advice my kids about money and also when they are already earning on their own. Here's the advise:

Saves A Lot

My wife and I teach our kids the habit of savings, and to our first child, now a teenager, we give a month of school's allowance to test how he manage a bigger amount of money.

My kids most probably still living with us when they are already earning money. So all the expenses like foods, bills, etc. will still shoulder by myself😕. So there's no reason not to save more than 75% of what they will be earning.

Invest Your Time Wisely

Kids are still kids and they want to play but there should always have a balance. My eldest, now a teenager are hook with his smartphone, playing online games, watching YouTube. To enhance his curiosity and interest in financial matters, we both watch some money, real estate and business related videos on YouTube.

A good work ethics start at home, so the kids have there own tasks even my youngest. Probably they both carry it until they are on their future jobs.

Spend Less Of What You Earn

I said to my kids that saving money is like paying yourself first then spend the rest. Budgeting is very important, if you really want a car but the budget cannot, you can always opt for a bicycle or motorcycle which have a very much lower maintenance price. Plus, if your focus is only on the spend side, even if you finally get the nice car, a new phone or a vacation, you'll miss the things that can gives you more earnings only if your focus is always on the earn side. Today if you spend 100% of your earnings maybe it's time to change lifestyle and reduce it gradually. Millionaires and billionaires lives a very modest life, some spend 30%, 20% or even 1% only of what they earned, the rest of their money is for investment.

Buy Assets That Increase Value Over Time And Gives You Income

We always remind our kids the importance of loyalty, trust, respect, know-how knowledge and a high standard of work ethics to get a high paying job or in building a business for themselves. One day they will earn money, and how they will spend it is very important. A big house, nice cars, expensive gadgets will always looks nice but this things doesn't give you any income, plus you need to pay for its maintenance costs. If you start young spending your money on apartments, land, house for rent, vehicles for rent, business, farming, livestocks, gold or jewelry, cryptocurrencies😅 you can have a solid financial foundation.

Always Be Updated

Everything can change suddenly so it is always be good to be updated and ready all the time . There's opportunity in every crisis, so better have the extra cash to look for investment opportunities.

But my most favorite moment with the kids about money, is when we talked together challenging each other to who will be much richer after 20 years, and to my amaze my 4 years old daughter said that it will be her!..

😂😂😂😂😂😂

Thanks for reading!