How to Raise Kids Who Are Smart About Money|5 Minute Video
Parents are accountable for teaching kids how to handle cash. Personal financing expert and bestselling author Rachel Cruze reveals the 3 things every kid (and adult) needs to understand about cash.
Donate today to PragerU! http://l.prageru.com/2ylo1Yt
Signing up with PragerU is totally free! Sign up now to get all our videos as soon as they’re launched. http://prageru.com/signup
Download Pragerpedia on your iPhone or Android! Countless sources and realities at your fingertips.
iPhone: http://l.prageru.com/2dlsnbG
Android: http://l.prageru.com/2dlsS5e
Join Prager United to get new swag every quarter, special early access to our videos, and an annual TownHall call with Dennis Prager! http://l.prageru.com/2c9n6ys
Join PragerU’s text list to have these videos, free product giveaways and breaking announcements sent directly to your phone! https://optin.mobiniti.com/prageru
Do you shop on Amazon? Click https://smile.amazon.com and a portion of every Amazon purchase will be contributed to PragerU. Exact same excellent items. Very same low price. Shopping made significant.
VISIT PragerU! https://www.prageru.com
FOLLOW us!
Facebook: https://www.facebook.com/prageru
Twitter: https://twitter.com/prageru
Instagram: https://instagram.com/prageru/
PragerU is on Snapchat!
SIGN UP WITH PragerFORCE!
For Students: http://l.prageru.com/29SgPaX
JOIN our Educators Network! http://l.prageru.com/2c8vsff
Script:
Everybody knows the earlier you discover a language, the easier it is to master. Finding out a foreign language at four takes a lot less effort than discovering one at forty. The same applies with handling your cash. I can tell you this from individual experience.
I matured in a home where the worth of money was a regular subject of discussion. Today, I teach people how to get out of debt and develop wealth with my father, Dave Ramsey. Maturing in my moms and dads’ home, I found out a couple of features of kids and cash.
Here are three:
One: Put your kids to work.
It’s extremely important that your kids comprehend that cash originates from work– not from mom and dad’s wallet. As quickly as your kids can comprehend the principle of cause and effect– which occurs at a really young age– you can start teaching them about the work/money connection.
Simply make sure it’s age proper. And pay them for some of the work they do.
Let your kids understand that in the real world you get paid just when you work. And it’s with the cash made from work that you can purchase the things you want.
When kids work for things they want to purchase, the purchase seems like an achievement, not an entitlement. You’re sending out the opposite message when you simply hand your kids a $20 costs when they ask for it, or provide an allowance for essentially breathing.
Obviously, not whatever your kid chooses to buy will be a clever purchase. Which brings us to …
Lesson Number Two:
Let your kids make errors with their money.
Lots of grownups make expensive mistakes due to the fact that, as kids, they were never permitted to make little, low-cost ones. Tears now will save a lot of tears later on.
My parents took our family to Opryland Theme Park in Nashville when I was young. Father and Mom had one easy guideline: If you want to play the carnival video games, you need to spend your own money.
Obviously, I ran to the very first game near the entrance, slapped some cash on the table, and took my turn. I lost. So I put down more cash. And I lost again– and again. When I reached into my pocket and found absolutely nothing however lint, and then came the terrible minute.
We had a whole day at Opryland ahead of us and I had actually blown through my cash! I ran back to Mom and Dad and pled them for more money and promised I ‘d pay them back. What Dad said has actually stuck to me ever since: “Rachel, when the cash’s gone, it’s gone.”
They’ll waste money on things that a week later they want they had actually never purchased. And as their moms and dad, there are times you require to let them make that error and suffer the repercussions.
For the total script, visit https://www.prageru.com/videos/how-raise-kids-who-are-smart-about-money
source
Parents are accountable for teaching kids how to manage money. Personal finance specialist and bestselling author Rachel Cruze reveals the 3 things every kid (and adult) requires to know about money.
Growing up in my parents’ home, I learned a few things about kids and cash.
I ran back to Mom and Dad and asked them for more money and promised I ‘d pay them back. What Dad said has actually stuck with me ever given that: “Rachel, when the money’s gone, it’s gone.”
