By JLP | April 10, 2008
This is the first ever post collaboration between my wife and me.
Last night my wife and I were talking about this blog. On the spur of the moment I grabbed a piece of paper and told her I wanted her to help me write a post. For some reason the number five and the word “kids” popped into my mind so I said, “Let’s make the post about 5 things we want our kids to know about money.”
So,… here are five things my wife and I want our kids to know about money:
1. Give away at least 10% of your money away. I use the 10% figure because that represents our tithe, which in my opinion, is the least amount that we should give away. Giving with the right attitude reaps amazing results.
2. Save at least 10% of your money and invest it wisely. Take advantage of tax-deferred growth by investing in your company’s 401(k) plan or other retirement plan and don’t forget about a Roth IRA.
3. You don’t have to spend your money as soon as you get it. Plan for purchases. Set goals and work towards those goals. Remember that there will always be something you’ll want so don’t make buying things your number one priority.
4. Along with point three, other than a car or home purchase, save up for whatever it is you want in advance. When buying a car, don’t buy the most expensive car. It’s okay to drive a cheaper car. People who might make fun of your car probably don’t have any savings to speak of. Also, don’t let some salesperson talk you into buying something that you’re not comfortable with. If your gut is telling you that you shouldn’t be buying it, LISTEN to your gut! Finally, just because a salesperson tells you can afford something doesn’t mean you can actually afford it.
5. The sooner you figure out what you want in life, the better. Don’t waste a lot of time and money switching majors in college. Just because you major in a particular subject in college does not mean that you have to take a career in that subject-area.
Don’t count on an inheritance. We aren’t saying that you won’t inherit anything—just don’t plan on it. We want you to be successful and make your own way. Any inheritance will just be icing on the cake.
Like everything, I’m sure I probably missed something so if you have something you would like to add, please leave a comment. What things do you want your kids (or grandkids) to know about money?