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Financial concepts today are getting easier now to grasp. Movements from different organizations that talk about financial literacy program is getting momentum compare to the previous decades. Maybe this is because of the previous mistakes of our fellow countrymen. As a parent we are responsible in preparing the next generation for the upcoming tasks. Historically, year after year the number of fraud victims due to very good financial engineering and poor decision making is costing us billions of pesos but in today’s world we can prevent that from happening by spreading the fundamental values to the younger ones.
What is Budget
Teaching them about budget is also teaching them how to fish regardless of their resources. Never let your kids graduate from grade school without knowing how to do this because this is the pillar of financial management. Be organize with your finances.
The battle between wants vs needs
Kids are very known to their “I want it now” syndrome they are highly emotional and will throw temper tantrums ASAP to get what they want. Since you are ahead and more intelligent to your kids, you are using the logical part of your brain after weighing in the available resources. Once you passed an efficient system the future generation is going to be more responsible.
The concept of Investments
In simple terms once they spent something there should be a bigger return in a long run. We are not talking about consumerism but real investments like 1000% return such as education, attending a class or put so much time in something that you love like art class and use your kids talent to create project after projects to serve others.
Credit card and Debit Card usage
Let your kids be knowledgeable about how to use this or else this will make or break them. Both cards can be use in the same manner but if you keep on swiping without too much control and don’t know when to stop they will end up in a very deep hole.
Power of Debt
My parents hate having debt and since I live in a Christian home our philosophy is if you are in debt then you are slave to the lender. Explain to them that being in debt and interest rates should never bury you in stress.
Everlasting Taxes
You can escape other stuff in this world aside from tax and your kids should be aware of it to make sure not to focus to much with it. Wealthy people focuses in earning more and not just in taxes.
Compound interest
The 8TH wonder of the world. When your kids know this as early as possible they will be surely ahead of the game of money. Let them learn this wisely and it will help your kids be more financially savvy.
Beware of Scams
This is for older kids. In a low trust world let your kids learn not to believe every thing that they hear from other people is true. Let them ask you and get counsel from the people they look up to. Sit down with them so they can open up. Many people will lure your kids.
Giving to less fortunate
This is counter cultural but totally liberating. The principle the more you give the more you receive. The Proverbs 19:17 ESV says it all “ Whoever is generous to the poor lends to the Lord, and he will repay him for his deed.”
David Isaiah Angway is a Financial Evangelist
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